19th Nov 2020 17:58
(Alliance News) - Smurfit Kappa Group PLC on Thursday said it intends to conduct a non-pre-emptive placing of new ordinary shares to raise gross proceeds of about EUR650 million.
Credit Suisse, Davy and BNP Paribas are acting as joint global co-ordinators and joint bookrunners in relation to the placing and the final number of placing shares and price will be determined at the close of the bookbuild, Smurfit said.
The Irish paper and packaging firm said it identified EUR1.2 to EUR1.4 billion of investment opportunities, which it believes will strengthen the business for the long-term.
"Our strong track record of delivery has resulted in the group being very well-positioned to capitalise on structural growth opportunities. From this position of strength we are now focused on investing to strengthen the business and accelerating our vision," said Chief Executive Tony Smurfit said.
"Net proceeds from the placing, together with internally generated cash flows, will enable us to accelerate investment over the next three years, and enable us to deliver for our customers with enhanced financial flexibility," he added.
The stock closed down 1.9% at 3,222.00 pence each on Thursday in London.
By Arvind Bhunjun; [email protected]
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