6th Nov 2020 08:54
(Alliance News) - AVEVA Group PLC on Friday said it plans to raise GBP2.84 billion through a rights issue of shares, which will go towards the USD5.0 billion acquisition of data management software firm OSIsoft LLC.
Under the rights issue, for every nine existing shares held in AVEVA, shareholder will be entitled to buy seven rights issue shares. This will lead to the issue of 125.7 million shares.
The rights issue will be conducted at a price of GBP22.55 per share, reflecting a discount of 33% to the theoretical ex-right price of GBP33.28 by reference to Thursday's closing price.
Shares in the FTSE 100 information technology firm were down 1.7% at 4,092.00 pence on Friday in London.
The rights issue will be underwritten by JP Morgan Securities and Numis Securities, both of which are acting as joint global co-ordinators and bookrunners, with Barclays Bank and BNP Paribas acting as joint bookrunners, and Banco Santander SA as lead manager.
The rights issue is conditional on the resolution needed to complete the acquisition, and authorising director to allot shares in connection with the rights issue and the acquisition.
Schneider Electric SE, which holds an indirect 60% stake in AVEVA, has irrevocably undertaken to vote in favour of the resolution. Schneider shares were down 1.0% in Paris early Friday at EUR112.50.
AVEVA in August agreed to acquire OSIsoft for USD5.0 billion, a deal that is expected to be completed between December and February 2021.
The deal is aimed at positioning AVEVA to take part a shift by industrial companies toward software-based automation that helps factories run more efficiently.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
AVV.L