The Australian share market which was having difficulty to find a direction on Friday finally ended at 14-month high value. The economic data numbers from the US and record first quarter economic growth numbers from China were a big reason for this high in ASX. ASX has continued strong today morning as well, surging 0.39% and reaching 7090.70. Over the last 5 days, index has risen by almost 1.67%.
The merger announced today between the 2 prominent players Orocobre and Galaxy Resources will allow the shareholders of both companies to benefit from full potential of combines asset portfolio and accelerate the development of combined growth projects. The AUD 4 billion merger is arranged such as, Orocobre will buy Galaxy Resources through a scheme of arrangement. Galaxy Resources will receive 0.569 Orocobre shares for each Galaxy share held by them.
Seven Group Holdings announced that it is raising AUD 550 million through a fully underwritten placement. The transaction will see the issue of 22.2 million shares at a price of AUD 22.5 per share. AUD 500 million is planned through institutional investors, whereas another AUD 50 million through share purchase plan.