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- The Star Entertainment Group (ASX:SGR) completes an institutional placement and entitlement offer, raising approximately $565 million
- The institutional entitlement offer garnered just a 67 per cent take-up rate
- SGR plans to use the funds to strengthen its balance sheet and execute strategic priorities
- The casino operator is also launching a retail entitlement offer with the aim of raising a further $185 million
- Shares are down 8.01 per cent, trading at 63.8 cents at 1:16 pm AEST
The Star Entertainment Group (ASX:SGR) has completed an institutional placement and entitlement offer, raising more than $500 million.
The capital raising offered new shares at 60 cents per share for a combined raise of $565 million.
The institutional entitlement offer secured just a 67 per cent take-up rate.
“We are pleased and appreciative of the support we have received from both our existing shareholders and new investors,” SGR CEO Robbie Cooke said.
“The refinancing and further capital structure initiatives announced yesterday represent a key milestone in the renewal of The Star.”
“With a strengthened balance sheet and additional flexibility, we have a strong platform from which to deliver on our renewal program and strategic priorities.”
The issuance and trading of the new shares resulting from the placement and entitlement offer are scheduled for October 5 and October 6, respectively.
For retail investors keen to participate, The Star is also launching a retail entitlement offer, aiming to raise approximately $185 million.
Eligible retail shareholders in Australia or New Zealand will receive more details around October 3.
SGR shares were down 8.01 per cent, trading at 63.8 cents at 1:16 pm AEST.
