Service Stream raises $404M for acquisition
Key points
- Service Stream raised approximately $404 million via an institutional entitlement offer and placement.
- The institutional offer saw a 92.5% take-up rate at an offer price of $2.03 per share.
- Proceeds will partly fund the $975 million acquisition of facilities management provider Programmed.
Service Stream (ASX:SSM) raised approximately $404 million to partly fund its $975 million purchase of maintenance group Programmed.
Existing institutional shareholders took up approximately 92.5% of their available entitlements under the offer.
"This support underscores investor confidence in the transaction’s strategic rationale," said Service Stream Managing Director Leigh Mackender.
The group issued roughly 199 million new shares priced at $2.03 per share.
Following the announcement, the Service Stream share price was unchanged at $2.20.
Service Stream stated the transaction brings together two complementary businesses to expand services for clients.
The transaction remains subject to an estimated $65 million debt adjustment and potential EBITDA-linked price reductions.
