QTI in capital spat with The Rock

The Rock Building society will raise up to $5million to bolster its capital position as its second-largest shareholder pushes to replace two directors, according to a report in The Australian Financial Review. 

Listed investment firm Queensland Trustees and Investment (QTI) wants to appoint two of its own staff to the building society's board, saying that it has taken The Rock too long to decide to raise capital.

In a letter to shareholders, QTI points to a significant fall in The Rock's mortgage book, declines in regulatory capital and a continued drop in net profit.

Largest shareholder FirstMac is supportive of QTI's proposals.

Meanwhile, The Rock said yesterday it would seek to raise the capital through a private placement with the issue of new fully paid ordinary shares at $2.36.

This is near to its lowest price in about nine years.

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