Equiniti plans discounted rights issue to fund Wells Fargo FS acquisition
Equiniti Group
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16:55 09/12/21
Equiniti Group is planning a £122m rights issue at a 3232% discount to help fund its proposed $227m cash acquisition of Wells Fargo's share registration services business (£176m).
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The FTSE 250 company will issue 64.3m shares, representing approximately 21.4% of its issued share capital and 17.6% of the enlarged share capital following completion, at a price of 190p per share versus a closing price of 297.1p overnight.
The acquisition is conditional on a shareholder vote at a general meeting on 28 September 2017, with the rights issue taking place the day after.
Equiniti will fund the Wells Fargo purchase with cash from the rights issue and from additional debt facilities of £120m.