Steadfast Group (ASX:SDF) - Managing Director, Robert Kelly.
Managing Director, Robert Kelly.
Source: Meridian Lawyers
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  • Insurance company Steadfast (SDF) successfully completes its institutional placement and raises $200 million
  • Approximately 44.3 million new shares will be issued at $4.51 – a 2.4 per cent discount to the close on August 13 of $4.62
  • Steadfast will also be offering eligible shareholders the ability to participate in a share purchase plan (SPP) to raise a further $20 million
  • The company will use the money from the placement and share purchase plan to fund the $411.5 million acquisition of private broker network Coverforce
  • Steadfast ends the day 3.84 per cent in the green with shares trading at $4.87

Steadfast (SDF) has successfully raised $200 million through a recently completed institutional placement.

Yesterday, the insurance company entered a trading halt and stated it would be raising funds for the $411.5 million acquisition of Coverforce.

Of this, $217.8 million will be paid in scrip while the rest will be paid through a capital raising.

Coverforce is Australia’s largest private broker network who primarily focuses on the small-to-medium enterprise sector.

This acquisition will give Steadfast access to Coverforce’s tech and services platform.

Approximately 44.3 million new shares will be issued under the institutional placement at $4.51.

This price represents a 2.4 per cent discount to the closing price of $4.62 on August 13 and a premium to the underwritten floor price of $4.35.

Shares are expected to settle on August 19 and be allocated and begin trading on the ASX on August 20.

Steadfast will also be offering eligible shareholders the ability to participate in a share purchase plan (SPP) to raise a further $20 million.

While a price has not been announced, shares will be equal to the lesser of $4.51 or have a one per cent discount to the five-day volume-weighted trading price.

Eligible shareholders will be able to purchase up to $30,000 without incurring any brokerage or transaction costs.

Further details regarding the SPP are expected to be announced next week.

CEO and Managing Director Robert Kelly commented on the outcome of the placement.

“Since listing, Steadfast has continued to demonstrate and deliver on its strong track record of successfully executing and integrating acquisitions,” Mr Kelly said.

“As previously announced, the proceeds raised from the institutional placement and the accompanying share purchase plan will be used to fund the 100 per cent acquisition of Coverforce for $411.5 million.”

Steadfast has ended the day 3.84 per cent in the green with shares trading at $4.87 in a $4.08 billion market cap.

SDF by the numbers
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