logo-loader
viewDS Smith plc

DS Smith confirms launch of £1bn cash call to part fund acquisition of Spanish rival Europac

The FTSE 100-listed packaging group announced a fully underwritten, three-for-11 rights issues which will see the firm issue 293mln new shares at 35p each

Cash
The rights shares represent 27.3% of DS Smith’s existing share capital and 21.4% of its enlarged share capital following the acquisition

DS Smith PLC (LON:SMDS) has confirmed that launch of a £1bn cash call with the proceeds to be used to partly fund its acquisition of Spanish rival Papeles y Cartones de Europa, known as Europac, for €1.67bn (£1.4bn) which was unveiled earlier this month

The FTSE 100-listed packaging group announced a fully underwritten, 3-for-11 rights issues which will see the firm issue 293mln new shares at 35p each.

READ: DS Smith agrees €1.67bn bid for Europac

The rights shares represent 27.3% of DS Smith’s existing share capital and 21.4% of its enlarged share capital following the acquisition.

Goldman Sachs and JPMorgan are acting as joint bookrunners for the right issue.

Announcing the Europac deal on June 4, DS Smith said the acquisition was an “exceptional scale opportunity” to enhance its customer offer in a key packaging growth region, as well as strengthening its global supply chain.

The company added that annual run-rate pre-tax cost synergies of €50mln had been identified, with the acquisition accretive to earnings per share and return on invested capital (pre-tax) to exceed the weighted average cost of capital in the first full financial year of ownership.

Quick facts: DS Smith plc

Price: 370 GBX

LSE:SMDS
Market: LSE
Market Cap: £5.08 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Piedmont Lithium secures landmark Section 404 Permit to...

Piedmont Lithium Ltd (ASX:PLL) CEO Keith Phillips tells Proactive the lithium explorer has received the Section 404 Permit under the Clean Water Act from the US Army Corps of Engineers for its lithium project in North Carolina. Phillips says this landmark achievement follows a fair, albeit...

11 hours, 42 minutes ago

RNS

Half-year Report

1 day, 19 hours ago

Total Voting Rights

4 days, 14 hours ago

Block listing Interim Review

1 week, 1 day ago

Block listing Interim Review

1 week, 1 day ago

Director/PDMR Shareholding

3 weeks, 3 days ago

Holding(s) in Company

1 month ago

Total Voting Rights

on 1/11/19

Pre-close statement

on 31/10/19

2 min read