Soul Patts-Brickworks merger fully funded after extra $220m equity commitments
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The news: The merger between investment house Washington H Soul Pattinson and building products group Brickworks is now fully funded after combined entity TopCo received additional conditional share placements.
The numbers: Additional commitments of $220 million for TopCo shares are fully underwritten by Aitken Mount Capital Partners and conditional on completion of the merger, according to a joint statement to the exchange from the prospective partners.
The shares are valued at $42.61 each, the last closing price for Soul Patts.
TopCo has now received commitments for 34 million shares with total proceeds of about $1.4 billion. This includes initial commitments for 14.9 million shares announced in June and 14 million shares in July.
The context: As previously announced, the proceeds from the TopCo share issuance will cover a significant portion of Brickworks’ debt as well as other liabilities, including the Soul Patts convertible bond and to fund transaction costs like stamp duty.
What they said: “Securing full equity funding is a key milestone that gives us maximum flexibility and certainty as we continue to advance the proposed merger,” Soul Patts chief executive and managing director Todd Barlow said.
“It reflects strong investor support and reinforces our confidence in the long-term value creation for all shareholders.“
Brickworks chief executive Mark Ellenor said that, now the equity is in place, the two companies are “well set to deliver on the strategic benefits of the merger, backed by a simplified balance sheet and clear growth agenda”.
The source: ASX
