Orica Limited ABN 24 004 145 868
ASX Announcement
Pro Rata Entitlement Offer and Demerger of Consumer Products
THESE PRESS MATERIALS ARE NOT FOR RELEASE IN THE UNITED STATES
Orica Limited (“Orica”) today announced that it will raise up to approximately $900 million through an accelerated, pro rata entitlement offer (“Entitlement Offer”) at $22.50 per share. The Entitlement Offer will further strengthen the Company’s balance sheet and provide financial flexibility to pursue its growth ambitions.
Orica also announced its intention to demerge its Consumer Products business to create a premier branded consumer goods company, with its own name, separately listed on the ASX (“Demerger”). Orica expects the Demerger to occur in early 2009, subject to shareholder, court and other approvals.
“Today’s announcement is an important milestone in Orica’s evolution. We see many growth opportunities ahead of us and the Entitlement Offer will provide the financial flexibility to make the most of them as they arise,” Orica Chairman Don Mercer said.
“Strategically it is the right time for the Demerger. We have built strong businesses and the Demerger is expected to generate shareholder value in creating two market leading companies. It will also allow Orica shareholders to continue to benefit from owning the Consumer Products business which is the clear market leader in branded home improvement products in Australia and New Zealand.
“Orica will become entirely focused on delivering shareholder value through its mining services (which will represent approximately 90% of the company’s earnings) and chemicals businesses.
“Orica is a global leader in providing services to the mining sector and we see excellent growth opportunities ahead in this market. The Entitlement Offer will ensure we are positioned to capture the best of those.”
Pro Rata Entitlement Offer
Eligible shareholders will be offered the opportunity to acquire Orica shares at $22.50 each on the basis of one new ordinary share for every eight existing ordinary shares. The issue price of $22.50 per share represents an 18.1% discount to the closing price of Orica shares of $27.47 on 21 July 2008 and a 16.4% discount to the Theoretical Ex-Entitlement Price1.
Orica will raise approximately $600 – 900 million through the Entitlement Offer, which will be
For personal use only use personal For conducted in two tranches: