25th Jul 2018 12:11
LONDON (Alliance News) - Packaging firm DS Smith PLC said Wednesday it has raised over GBP1 billion from its discounted rights issue to fund its GBP1.45 billion Europac acquisition.
In late June, DS Smith proposed a 3 for 11 rights issue of 293.1 million shares at 350 pence per share. Shares in DS Smith were 0.8% higher at 504.76 pence on Wednesday.
The funds will be used to finance DS Smith's GBP1.45 billion acquisition of European packaging business Papeles y Cartones de Europa SA, also known as Europac.
Earlier on Wednesday, DS Smith announced it had received acceptances from shareholders for 282.9 million or 96.5% of the shares. The rights issue raised GBP990.3 million.
Later on Wednesday, DS Smith confirmed joint underwriters Goldman Sachs International, JP Morgan Cazenove and Citigroup Global Markets had secured buyers for the remaining outstanding 10.2 million shares not taken up by investors.
The rump placing shares were issued at 500 pence per share, raising GBP50.9 million. In total, the issue and placing raised GBP1.04 billion in proceeds for DS Smith.
After the share issue, DS Smith has 1.37 billion shares outstanding.
Related Shares:
Smith (DS)