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- Seven Group Holdings (SGH) has entered a trading halt as it aims to raise $550 million to reduce its debt
- The raise includes a $500 million placement and a $50 million share purchase plan
- Under the placement, Seven Group will issue 22.2 million shares for $22.50 each — a four per cent discount to its most recent closing price
- The share purchase plan will allow registered shareholders to subscribe for up to a maximum of $30,000 of additional new shares
- Funds from the raise will help reduce Seven’s overall net debt from $2.6 billion to $2.1 billion and boost its free float from 38.8 per cent to 42.5 per cent
- On the market, Seven last traded at 23.43 per share on April 16
Kerry Stokes’ Seven Group Holdings (SGH) has entered a trading halt as it aims to raise $550 million to reduce its debt.
The raise includes a $500 million placement and a $50 million share purchase plan.
Under the placement, Seven Group will issue 22.2 million shares for $22.50 each — a four per cent discount to the last closing price of $22.43 per share.
Settlement of the placement is expected to occur on April 22, 2021, with new shares expected to commence trading on the following business day.
The share purchase plan will allow registered shareholders to subscribe for up to a maximum of $30,000 of additional new shares.
Funds from the raise will help reduce Seven’s overall net debt from $2.6 billion to $2.1 billion. The raising will also boost the company’s free float from 38.8 per cent to 42.5 per cent.
The halt will see company shares paused until Wednesday, April 21, or when the raise is completed.
CEO and Managing Director Ryan Stokes says the equity raising is an important step for Seven.
“As our track record demonstrates, we maintain a disciplined approach to investment and capital allocation for the long-term benefit of our shareholders,” he said.
“Today’s raising follows positive investor feedback and reflects a desire to see a continued increase in free float. In the context of a strong 1HFY21 result from our operating businesses, which continue to benefit from a focus on customers, operating efficiency, and margins. SGH is pleased to offer new and existing shareholders the opportunity to participate in the equity raising,” he added.
On the market, Seven last traded at 23.43 per share on April 16.
