Managed Accounts raises $34 million in heavily oversubscribed Share Placement
- Share Placement heavily oversubscribed, supported by 27 new high-quality institutions
- Proceeds will be used to part fund the acquisition of Linear Financial Holdings Pty Ltd (Linear)
- Share Purchase Plan (SPP) seeks to raise additional working capital
Managed Accounts Holdings Limited (ASX: MGP) has successfully completed a Share Placement to raise approximately $34 million to part fund the acquisition of Linear Financial Holdings Pty Ltd (Linear).
The Placement was heavily oversubscribed and supported by 27 new high-quality institutions, through Joint Lead Managers Shaw and Partners and Evans and Partners and Co-Lead Manager, Veritas Securities.
MGP Executive Chairman Don Sharp said “the Placement received very strong support from existing and new institutional and sophisticated investors. The support for this capital raising is a great endorsement of the proposed acquisition of Linear and merger of the two companies. This transaction is transformational for MGP, creating a market leading business with $11.5 billion in FUA.”
Under the Placement, approximately 121.4 million new fully paid ordinary shares will be issued at $0.28 per share, which represents a 12.5% discount to MGP’s closing price of $0.32 on 30 October 2017, and a 9.2% discount to the 30 Day VWAP (Volume-Weighed Average Price) of A$0.308.
New MGP shares issued under the Placement will rank equally with existing MGP shares and are expected to be issued on 13 November 2017, subject to shareholder approval at MGP’s general meeting on 9 November, as per the initial timetable announced for the capital raising.
Eligible MGP shareholders will have an opportunity to subscribe for up to $15,000 of new MGP shares under a Share Placement Plan (SPP). The issue price of the new MGP shares under the SPP will be $0.28, and new MGP shares issued under the SPP will rank equally with the existing MGP shares.
