Pinnacle shares dive as $25m share purchase plan opens
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The news: Investment manager Pinnacle was the worst performing company across the ASX 200 after morning trade after opening its $25 million share purchase plan (SPP).
The numbers: Pinnacle shares were down 4.2% to $23.37 by 12:30pm AEDT while the wider financial sector gained 0.74% and the ASX 200 rose 0.51%.
New shares under the SPP will be issued at $20.30. The SPP, which is expected to close on 12 December, follows the completion last week of a $400 million equity raising through an institutional share placement.
The context: Funds from the equity raising will 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.
They will also be used to seed new strategies for existing affiliates and support investment in additional growth initiatives.
The source: ASX announcement
