Sims raising $437M for more ‘flexibility’

Nov 24, 2009 | 12:23 PM | Michael Marley

Sims Metal Management Ltd. plans to raise Australian $475 million ($437 million) to pay down debt and fund further acquisitions.

The Sydney, Australia-based scrap processor and exporter said the money raised would give it the "financial flexibility" to pursue a growth agenda.

"Through the capital raising, the company will be in an enviable position to strengthen its existing business and fund acquisition growth opportunities, which will enhance and expand its industry leading position," Daniel W. Dienst, Sims chief executive officer, said in a statement.

The A$475 million comprised a A$400-million ($368 million) fully underwritten institutional placement at A$21 ($19.30) a share and an A$75-million ($68.9 million) non-underwritten share purchase plan. The institutional placement is at a 5.4-percent discount to Sims' last traded price of A$22.20 ($20.40), before the company entered a trading halt on Friday. ....

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