SDA successfully completes Institutional Entitlement Offer
Sydney, Nov 4, 2016 AEST (ABN Newswire) - On Wednesday, 2 November 2016, SpeedCast International Limited (
ASX:SDA) (7SC:FRA) (SpeedCast), announced an approximately AUD 295M equity raising (the Offer) to fund the acquisition of Harris CapRock from Harris Corporation.
Key highlights
- Fully underwritten Institutional Entitlement Offer successfully completed, raising approximately AUD 252M
- Overwhelmingly strong support shown by both existing and new institutional shareholders
- Institutional Bookbuild clearing price of AUD 3.40 per share representing premium of AUD 0.30 to the Offer Price of AUD 3.10 per share
- SpeedCast shares will recommence trading on Friday, 4 November 2016
- Retail Entitlement Offer opens on Wednesday, 9 November 2016
The Offer comprises of a fully underwritten 2 for 3 accelerated renounceable entitlement offer for new SpeedCast ordinary shares (New Shares), through an accelerated institutional component (Institutional Entitlement Offer) and a retail component (Retail Entitlement Offer).
Today, SpeedCast is pleased to announce the successful completion of the Institutional Entitlement Offer, raising approximately AUD 252M at the Offer price of AUD 3.10 per New Share (Offer Price).
A bookbuild for approximately 24M Institutional Entitlement Offer shortfall shares was held on Thursday, 3 November 2016 (Institutional Bookbuild), attracting strong demand from both new and existing shareholders. The Institutional Bookbuild cleared at a price of AUD 3.40 per New Share, representing a premium of AUD 0.30 per New Share above the Offer Price.
Eligible institutional shareholders who elected not to take up their entitlements and certain ineligible institutional shareholders will receive AUD 0.30 for each entitlement sold through the Institutional Bookbuild, less any applicable withholding tax.
Commenting on the outcome of the Institutional Entitlement Offer, SpeedCast's CEO, Pierre-Jean Beylier, said, "We are delighted with the exceptional support that our existing shareholders and new investors have shown. It reflects the strong support from our investors for the acquisition of Harris CapRock, a transformational opportunity for SpeedCast. We welcome our new institutional shareholders to the company and look forward to sharing with them our future successes."
The New Shares to be issued under the Institutional Entitlement Offer will rank equally with existing SpeedCast shares in all respects from the date of their issue. Settlement of New Shares under the Institutional Entitlement Offer is expected to complete on Thursday, 10 November 2016 and the New Shares are expected to be issued and commence trading on the ASX on a normal settlement basis on Friday, 11 November 2016.
Commencement of the Retail Entitlement Offer
The Retail Entitlement Offer will open on Wednesday, 9 November 2016 and closes at 5:00pm (Sydney time) on Friday, 18 November 2016. Eligible retail shareholders will have the opportunity to participate at the same Offer Price of AUD 3.10 per New Share and at the same offer ratio of 2 New Shares for every 3 existing SpeedCast ordinary shares as participants in the Institutional Entitlement Offer.
Eligible retail shareholders wishing to participate in the Retail Entitlement Offer should carefully read the retail offer booklet and accompanying personalised entitlement and acceptance form which are expected to be despatched on Wednesday, 9 November 2016. Copies of the retail offer booklet will be available on the ASX on or around Tuesday, 8 November 2016.
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the world's most trusted communications and IT services provider, delivering critical communications solutions to the Maritime, Energy, Mining, Media, Telecom, Cruise, NGO, Government, and Enterprise sectors. With more satellite capacity than any other provider, Speedcast enables faster, seamless pole-to-pole coverage from a global hybrid satellite, fiber, cellular, microwave, MPLS, and IP transport network with direct access to public cloud platforms. The company also integrates differentiated technology offerings that provide smarter ways to communicate and distribute content, manage network and remote operations, protect and secure investments, and improve the crew and guest experience. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries. Learn more at www.speedcast.com.
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