Saputo Inc. on Aug. 21 announced a C$400 million public offering of common shares and a C$199 million concurrent private placement to two of its shareholders.
The Canadian dairy products maker launched an offering of 10,102,000 of its common shares for C$39.60 apiece, for a total consideration of C$400 million.
It also entered into subscription agreements with each of its principal shareholders, Jolina Capital Inc. and Placements Italcan Inc., to purchase 2,525,253 and 2,500,000 additional common shares at a purchase price of C$39.60 for gross proceeds of about C$100 million and C$99 million, respectively.
Saputo expects the total gross proceeds from the offering and concurrent private placement to be approximately C$599 million. The company plans to use the proceeds to repay outstanding indebtedness due to completed acquisitions, and for general corporate purposes.
In addition, the company has also granted the underwriters an option to purchase up to an additional 1,515,300 common shares, exercisable for 30 days following the closure date.
The offering and the concurrent private placement are expected to close on or around Sept. 11, subject to customary closing conditions, including stock exchange approval.
National Bank Financial Inc. and BMO Capital Markets acted as underwriters in the offering.
