Smurfit Kappa has announced its plans to raise gross proceeds of approximately €660 million.
A total of 19,411,765 new ordinary shares in the company have been placed by Credit Suisse Securities Limited, J&E Davy and BNP Paribas at a price of €34 per placing share, the cardboard manufacturer said in a statement.
The sterling placing price, for those participants in the placing who have elected to settle in sterling, is £30.46, it said.
Credit Suisse, Davy and BNP Paribas are acting as joint global co-ordinators and joint bookrunners in respect of the placing.
The company said that the placing shares represent approximately 8.1% of the company’s issued share capital immediately prior to the placing.
“Our strong track record of delivery has resulted in the group being very well-positioned to capitalise on structural growth opportunities," said Group CEO Tony Smurfit.
"From this position of strength we are now focused on investing to strengthen the business and accelerating our vision."
"Net proceeds from the Placing, together with internally generated cash flows, will enable us to accelerate investment over the next three years, and enable us to deliver for our customers with enhanced financial flexibility," he said.
Smurfit added that continued development of e-commerce and the increasing demand for sustainable, paper-based packaging are presenting opportunities for Smurfit Kappa.
The company said that the placing shares, when issued, 'will be fully paid and will rank pari passu in all respects with each other.'
The placing shares will not be eligible for the recently declared interim dividend of 27.9 cent per share payable on 11 December 2020, it added.
Smurfit Kappa said that it consulted with a number of its major shareholders prior to the placing.
Certain directors and members of the senior management team have participated in the placing, the company said.
Smurfit said: "Accelerated investment, at this time, will allow us to increase our competitive advantage, align us with the sustainability goals of our customers and enhance our operational efficiency."
"The unrelenting dedication, commitment and loyalty of the broader Smurfit Kappa team has enabled us to strengthen our position, continuing to deliver for all stakeholders," he added.
The company said that is expected that settlement of the placing shares will occur at 8a.m. on 24 November 2020.
© 2020 Checkout – your source for the latest Irish retail news. Click sign-up to subscribe to Checkout.