- Home Consortium (HMC) has come out of a trading halt after successfully completing a $140 million placement
- Just yesterday, the property group entered the halt citing the reasons to be a $190 million equity raising and strategic acquisitions
- More than 48 million securities will now be issued to institutional investors at a price of $2.88 each
- Home Consortium will now be undertaking a share purchase plan to raise an additional $30 million
- The company will use the money to fund acquisitions and associated costs
- These acquisitions include three Woolworths-owned properties, a residential aged care property, and a retail complex
- Home Consortium has ended the day 1.33 per cent in the green with shares trading for $3.04 each
Home Consortium (HMC) has come out of a trading halt after successfully completing a $140 million placement.
Just yesterday, the property group entered the halt citing the reasons to be a $190 million equity raising and strategic acquisitions.
A total of 48,611,111 million new securities will now be issued to institutional investors at a price of $2.88 each.
This price represents a four per cent discount to the close on June 30 of $3 per share, and a 6.9 per cent discount to the five-day volume weighted average price of $3.09.
The securities are expected to settle on July 6, and be issued and begin trading on the ASX on July 7.
“We are very pleased with the outcome of the placement and the strong support from existing and new security holders,” Executive Chairman and CEO David Di Pilla said.
“This transaction takes us to a new level of scale and diversification for the next stage of our journey, which is an own, develop and manage strategy,” he added.
Home Consortium will now be undertaking a share purchase plan to raise an additional $30 million.
Eligible securityholders will be able to subscribe for up to $30,000 worth of securities without incurring any transaction or brokerage costs.
The plan will open on July 8, close on July 21, and securities will be allocated on July 28.
The remaining $20 million will be raised through the issue of equivalent securities to Aurrum Aged Care.
As announced yesterday, the money from the placement and share purchase plan to fund acquisitions and associated costs.
The company is planning on acquiring three Woolworths-owned properties for $127.8 million, an Aurrum Erina aged care property for a total of $32.59 million, and the Parafield Retail Complex for $25.5 million.
Home Consortium has ended the day 1.33 per cent in the green with shares trading for $3.04 each in a $593.7 million market cap.