Origin Energy Ltd
(ASX:ORG) has announced that it will raise $2.3 billion in new shares to pay down existing debt and strengthen its balance sheet, following its purchase of electricity assets in New South Wales.
The fully underwritten offer will enable shareholders to purchase one new share for every five currently held, at a price of $13.00 each which represents a 17 per cent discount to the last traded price.
Managing director Grant King says the entitlement offer will strengthen Origin’s financial position as the company pursues growth opportunities to expand the scale and scope of its business.
Last year Origin agreed to purchase $3.25 billion of the New South Wales government’s electricity assets.
Origin today also confirmed its full-year underlying profit guidance of around 15 per cent growth.
Origin moved from a profit to a loss in the six months to 31 December 2010, posting a net loss of $100 million.
