- Global investment company Pendal Group (PDL) has raised $190 million through an oversubscribed institutional placement
- Pendal issued 27.9 million shares at $6.80 per share which marks a 5.2-per-cent discount to the last closing price of $7.17
- Pendal will the money to acquire U.S. investment management firm Thompson, Siegel and Walmsley for US$320 million (roughly A$408.4 million)
- The company will also utilise debt and existing capital to fund the acquisition
- Additionally, Pendal will launch a share purchase plan, allowing shareholders to subscribe for up to $30,000 worth of new shares
- Company shares are up 1.5 per cent to trade at $7.45
Pendal Group (PDL) has raised $190 million through an oversubscribed institutional placement.
The global investment company announced its plans to raise fresh funding when its shares were in a trading halt on May 10.
Pendal issued institutional investors with 27.9 million new fully paid ordinary shares which will be issued at $6.80. This represents a 5.2-per-cent discount to the last closing price of $7.17 on May 7, 2021.
Pendal will the money to partly fund the acquisition of Thompson, Siegel and Walmsley (TSW) which will cost US$320 million (roughly A$408.4 million). The rest of the money will come from debt and existing capital.
“The response represents a clear endorsement of Pendal’s strategic acquisition of TSW, a business which is highly complementary to Pendal,” CEO Nick Good said.
TSW is a Virginia-based investment management firm and the buy is set to generate new funds under management for Pendal and lead to a double-digit earnings per share increase in the first year post-completion.
“The acquisition will accelerate our growth opportunities in the U.S. market and delivers scale and diversification benefits for Pendal across investment capability, asset classes, geographies and distribution channels,” Nick added.
The placement is expected to settle on Thursday, May 13, and new shares are expected to be issued and begin trading on the following day.
Share purchase plan
In addition, Pendal will offer eligible retail shareholders the chance to participate in a non-underwritten share purchase plan (SPP).
Shareholders may subscribe for up to $30,000 worth of new shares at the same price as the placement.
The SPP will be open from May 17 until June 7.
Company shares are up 1.5 per cent to trade at $7.45 at market close.