Australia’s largest pizza chain Domino’s Pizza Enterprises (ASX:DMP) reports it has completed a $150 million fully underwritten placement of about 2.3 million shares to institutional investors.
It is reported the funds raised under the placement will be used to fund the option to exercise price for the acquisition of all the shares held by Domino’s Pizza Group in the German joint venture (JV) and any surplus will be applied towards debt retirement.
The company notes the placement was received with strong support from existing shareholders and new investors.
In addition, the placement offer price was determined through a bookbuild process and ultimately priced at $66.38 per new share, the closing price is set for Wednesday 30 November this year.
“We look forward to acquiring full ownership in Domino’s Pizza Germany”
Commenting on the completion of the placement, Domino’s Pizza Chief Executive Officer (CEO), Don Meij says: “We are very pleased with the support shown by new and existing institutional investors for the placement, which reflected shareholder feedback prior to the capital raising.
We look forward to acquiring full ownership in Domino’s Pizza Germany and continuing to build the momentum across our network and delivering value to our customers, team members, franchisees and investors.”
Domino’s Pizza Enterprises also notes that eligible shareholders will be invited to apply for new shares at the lower price of $66.38, as well as a 2% discount to the closing price on the last day of the share price plan offer period, which is expected to be 22 December this year.
Domino’s Pizza Enterprise is the largest pizza chain in Australia, as well as the largest franchisee for the Domino’s Pizza brand in the world. The company holds the exclusive master franchise rights for Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Denmark and Taiwan.
The company now extends across 10 markets boasting more than 2,800 stories and leading the international Domino’s franchise.
With the placement now complete, Domino’s Pizza Enterprise announces the trading halt is expected to be lifted prior to market open today and settlement of the placement is expected for Tuesday 6 December this year.
