The Mirvac Group launches $750m placement

Company News

by Rachael Jones

The Mirvac Group (ASX:MGR) has launched a $750 million placement to fund strategic growth initiatives after a strong performance in Financial Year 2019.

The institutional placement is offered at $2.97 per new stapled security.

This offer price reflects a 4.2 per cent discount to to Mirvac’s closing price of $3.10 per stapled security on 28 May and a 4.5 per cent discount to the five-day volume weighted average price.

A share purchase plan is expected to raise up to another $75 million.

The new equity will be used to repay debt and secure commercial development pipeline that has an estimated end value of over $4 billion.

It will also provide capacity for a number of identified acquisition opportunities currently under due diligence with an estimated end value of over $2 billion.

Shares in Mirvac Group (ASX:MGR) closed-0.64 per cent lower at $3.10 yesterday.