ConnectEast bid to raise $350m in equity

Melbourne toll road company ConnectEast Group is seeking to raise over $350 million in equity, a media report said on Wednesday.

The Australian newspaper website said ConnectEast was seeking the funds to ease its capital position after traffic on its new toll road fell short of expectations.

The report did not cite any sources.

ConnectEast earlier on Wednesday requested a trading halt on its securities after the stock fell 4.26 per cent in morning trade.

ConnectEast said it had call for the halt pending an announcement about a proposal that currently "remains incomplete".

"ConnectEast is concerned that the confidentiality of the subject matter of the announcement may have been breached," it told the Australian Securities Exchange.

ConnectEast stapled securities lost three cents or 4.26 per cent to 67.5 cents in early session trading.

ConnectEast operates the EastLink toll road in Melbourne.

EastLink, which is ConnectEast's only road, was opened to traffic on June 29 and had operated toll free until July 27.

Last month, ConnectEast told investors at its annual general meeting that it had no need to refinance debt for two years and that it had cash reserves of more than $200 million to cover shortfalls in traffic volumes.