Seven Group plans to raise AU$550M to shore up balance sheet

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Summary

  • Seven Group Holdings Limited (ASX:SVW) is conducting a fully underwritten $500 million placement and a Share Purchase Plan to raise ~$50 million.
  • The equity raising is an important step to strengthen the Company’s balance sheet and provide flexibility for future growth.
  • Settlement of the Placement is scheduled for 22 April, with New Shares expected to commence trading on 23 April.

Australian diversified operating and investment group Seven Group Holdings Limited (ASX:SVW) has businesses and investments across industrial services, oil and gas and media. The Company’s securities on Monday were placed in trading halt, shortly before an equity raising was announced to the market.

Other ASX-listed companies that placed their securities on trading halt today pending the release of an announcement comprise Impact Minerals Limited (ASX:IPT), Elixir Energy Limited (ASX:EXR) and Antipa Minerals Limited (ASX:AZY).

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Seven Group Holdings equity raising

The Company will hold a fully underwritten placement of A$500 million. The ordinary shares are directed towards institutions as well as sophisticated investors. Along with this, a non-underwritten Share Purchase Plan was announced to raise approximately A$50 million.

  • The placement will consist of the issue of ~ 22.2 million ordinary shares (fully paid) at A$22.50.
  • The placement is being conducted today, with shares in trading halt until its outcome is announced.
  • Settlement is scheduled for 22 April 2021; New Shares may begin trading on 23 April 2021.

After the placement, the Company wishes to undertake a non-underwritten SPP (subject to Board’s right to scale). It will allow eligible retail shareholders in Australia and New Zealand to partake at the lower of the placement price of $22.50 and a 2.5 per cent discount to the VWAP during the last five days of the SPP offer period (starting 27 April 2021).

If total demand surpasses $50 million, Seven Group may raise the cap to lessen/remove the need for scaleback.

Use of funds

The equity raising is an important step for the Company to strengthen its balance sheet and provide flexibility for future growth, says Managing Director & Chief Executive Officer Ryan Stokes.

Funds raised can serve multiple purposes, illustrated below-


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