CONFIDENT institutional investors have backed Leighton Holdings' latest offer, raising $700 million.
The entitlement offer provides an opportunity for eligible shareholders to subscribe for one new share for every 14 Leighton Shares at the offer price of $35.35.
Leighton’s chief executive Wal King was very pleased with the high level of support the offer has received.
He said the net proceeds of the offer will be used to invest in plant and equipment which will primarily be used to grow our contract mining activities in
“The net proceeds will also be used to redeem the Leighton Notes, which have a total face value of $200 million and are resettable on December 01 2008,” he said.
Participation from existing eligible institutional shareholders was approximately 92%. HOCHTIEF, Leighton’s largest shareholder holding approximately 55% has taken up its entitlement in full.
As a result of the strong institutional support, only circa 1.7 million shares were available. The bookbuild clearing price for these shares was $41.00 per share, in line with the theoretical ex-entitlement price of $41.10 and $5.65 above the $35.35 offer price.
Leighton will now raise the remaining proceeds of $160 million through a retail offer.
The retail entitlement offer opens at August 20 when Leighton Shares will resume trading on the Australian Stock Exchange.
Australian Property Journal
