Orica Limited confirms the successful completion of its $65 million share purchase plan (SPP) following the close of the SPP on Monday, 18 March 2024. The SPP was announced to the market on Wednesday, 21 February 2024 in conjunction with a $400 million placement to eligible institutional investors (Placement).
Not for distribution or release in the United States.
The full proceeds of the SPP and 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.
In accordance with the terms of the SPP, the issue price of new fully paid ordinary shares (New Shares) under the SPP is $15.84, being the price at which shares were issued under the Placement.
Orica received strong support from retail shareholders for the SPP offer with more than 5,700 eligible applications totalling approximately $100 million.
As the total value of applications received under the SPP exceeded the SPP offer size of $65 million, Orica has undertaken a scale-back of applications consistent with the terms of the SPP1. The scale-back principles were structured with consideration to shareholder fairness as follows:
- applications for $1,000 of New Shares (being the minimum application amount) received from eligible shareholders were not subject to any scale back and will receive $1,000 of New Shares, rounded up to reflect a whole number of New Shares; and
- applications received from eligible shareholders for more than $1,000 of New Shares were scaled back on a pro rata basis based on the shareholdings of eligible applicants as at the Record Date2.
Orica Managing Director and CEO Sanjeev Gandhi said:
“We are extremely pleased to have such strong support from our retail shareholders who, along with our institutional shareholders, recognise the strategic benefits of the Cyanco acquisition, allowing us to create a leading integrated global sodium cyanide producer with world-class supply capabilities to the gold mining industry. Cyanco is a highly complementary business, and we are excited about the opportunities this will create for Orica, our customers, and our shareholders.”
Approximately 4.1 million New Shares are scheduled to be issued under the SPP on Monday, 25 March 2024. Trading of those New Shares on ASX is expected to commence on Tuesday, 26 March 2024 and holding statements are expected to be despatched on Wednesday, 27 March 2024. New Shares issued under the SPP will rank equally with existing Orica fully paid ordinary shares from their date of issue.
Excess application money resulting from the scale back will be refunded to each applicant via electronic funds transfer (EFT) on Monday, 25 March 2024 if payment instructions and bank details have been provided to Orica’s share registry. If EFT payment instructions have not been provided to Orica’s share registry, the excess application money will be paid by cheque and enclosed with holding statements.
Further Information
For enquiries in relation to the SPP, shareholders can contact Orica’s share registry from 8.30am to 7.30pm (Melbourne time) Monday to Friday on 1300 301 253 (callers within Australia) or +61 1300 301 253 (callers outside Australia).
To read the terms of the SPP, visit Orica share purchase plan open.
1. As disclosed in the SPP Booklet released to ASX on 29 February 2024
2. Record Date being 7:00 pm Melbourne time, on Tuesday, 20 February 2024