St Barbara shareholders drive first stage of Atlantic acquisition

Image: St Barbara

St Barbara has moved a step closer to a successful acquisition of Atlantic Gold, announcing the completion of the institutional component of its underwritten entitlement offer.

The accelerated element of the offer raised approximately $355 million at the offer price of $2.89 per new share in St Barbara.

Existing shareholders widely supported the institutional entitlement offer, taking up around 81 per cent of the new shares available.

Completion of the institutional phase of the offer represents the first step of St Barbara’s underwritten entitlement offer, which is expected to raise approximately $490 million.

The net proceeds of the offer are intended to be used to partly fund the acquisition of Atlantic and pay associated transaction costs.

St Barbara managing director and chief executive officer Bob Vassie said shareholders’ backing of the entitlement offer highlighted the confidence investors have in the acquisition of Atlantic.

“We are extremely pleased with the support for the acquisition and the entitlement offer shown by our existing institutional shareholders, and also welcome a number of new domestic and international institutional investors,” he said.

“The success of the entitlement offer provides a strong endorsement that investors share our confidence in St Barbara’s strategic direction and the significant opportunity for shareholders provided by the acquisition of Atlantic Gold.”

New shares subscribed for under the institutional entitlement offer are expected to be settled on May 23 and will be issued to commence normal trading on the ASX the following day.

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