Pinnacle raises $400m for stake acquisitions, shares up
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The news: Investment manager Pinnacle has completed a $400 million equity raising a day after announcing two strategic acquisitions, sending its shares higher.
The numbers: Pinnacle said it raised $400 million through an institutional share placement, issuing shares at $20.30 each, a 5.3% discount to its closing price on 19 November.
Pinnacle shares are up more than 3% to $22.11 in early trading on the ASX.
The context: The proceeds are to be used to fund the acquisition of minority stakes in two asset management firms, VSS Capital and Pacific Asset Management, for a total of $142.8 million.
The funds will also be used to seed new strategies for existing affiliates and support investment in additional growth initiatives, it said.
What they said: “We are very pleased with the success of the placement and the strong support delivered from existing and new institutional shareholders. It provides a strong endorsement that investors share our confidence in the strategy we are committed to pursuing and the exciting growth opportunities ahead of us,” managing director Ian Macoun said.
The source: ASX announcement
