Metals recycling company Sims Metal Management Ltd
(ASX:SGM) has announced a $400 million capital raising to accelerate the company’s acquisition growth strategy.
The funds will be raised through an institutional placement at $21, a share a 5.4% discount to its last closing price.
In addition the company says it aims to raise a further $75 million through a share purchase plan to eligible shareholders.
CEO Dan Dienst says initially proceeds will be used to repay debt, which will be redrawn as required.
Through the capital raising Mr Dienst says the company will be in an enviable position to strengthen its existing business and fund acquisition growth opportunities.
Looking ahead the company says although ferrous markets have shown signs of recent firming, it expects volatility and a continued challenging operating environment in its second fiscal quarter.
Sims Metal Management posted a loss of $150 million for 2009.
