Orica announces successful completion of A$400 million placement

22 Feb 2024

Orica (ASX: ORI) has successfully completed a A$400 million fully underwritten placement (Placement) of approximately 25.3 million new fully paid ordinary shares (New Shares) to eligible institutional investors at a price of A$15.84 per New Share (Placement Price).

The proceeds of the Placement will be used to partially fund the acquisition of Cyanco, a US-based leader in the manufacture and distribution of sodium cyanide primarily serving the gold mining industries in the US, Canada, Mexico, Latin America and Africa.

Orica Managing Director and CEO Sanjeev Gandhi said:

“We are extremely pleased with the very strong support from new and existing institutional investors who recognise the strategic benefits of our acquisition of Cyanco.

“Cyanco is a highly complementary business, and by combining it with our established sodium cyanide business, Orica will create a leading integrated global sodium cyanide producer with world-class supply capabilities to the mining industry.

“We are excited about the opportunities this will create for Orica, our customers, and our shareholders and we look forward to launching the share purchase plan for our eligible retail shareholders next week.”

All eligible institutional shareholders who participated in the Placement and bid for an amount less than or equal to their pro-rata share of New Shares in the Placement were allocated their full bid on a reasonable endeavours basis.1

 Settlement of New Shares issued under the Placement is expected to occur on 26 February 2024. New Shares are expected to be issued on 27 February 2024 and commence trading on ASX on a normal settlement basis on the same day.

Orica shares are expected to resume normal trading on the ASX from market open today (22 February 2024).

Share Purchase Plan

Orica will offer eligible Orica shareholders, being shareholders who had a registered address in Australia or New Zealand on Orica’s register at 7.00pm (Melbourne time) on 20 February 2024, the opportunity to apply for up to A$30,000 of New Shares free of any brokerage, commission and transaction costs in accordance with a share purchase plan (SPP). The SPP will be priced at the lower of the Placement Price and a 2.00% discount to the 5-day VWAP of Orica shares up to, and including, the closing date of the SPP, which is currently scheduled for 18 March 2024.

Full details of the SPP will be set out in the SPP Offer Booklet, which will be released to the ASX and made available to eligible shareholders in Australia and New Zealand on or around 29 February 2024.

1 For this purpose, an eligible institutional shareholder’s ‘pro rata’ share of New Shares in the Placement has been estimated by reference to Orica’s latest available beneficial shareholder register prior to launch of the Placement, but without undertaking any reconciliation processes and ignoring New Shares that may be issued under the SPP. Unlike in a rights issue, this may not truly reflect the participating shareholder’s actual ‘pro rata’ share of New Shares. Nothing in this announcement gives a shareholder a right or entitlement to participate in the Placement and Orica has no obligation to reconcile assumed holdings (e.g. for recent trading or sway positions) when determining a shareholder’s ‘pro rata’ share of New Shares in the Placement. Orica and the Lead Manager disclaim any duty or liability (including for negligence) in respect of the determination of a shareholder’s ‘pro rata’ share of New Shares in the Placement.

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