ANZ Banking Group’s board has pushed back against nervy underwriters, demanding a renounceable entitlement offer for its $3.5 billion equity raising slated to launch on Monday morning.
While investment banks have been hesitant to underwrite riskier renounceable deals in soft equity markets, sources said ANZ’s board was adamant it needed the purest possible structure followingSo as of Sunday night, the bankers were understood to be seeking approval to underwrite a $3.5 billion renounceable entitlement offer, which would compensate any ANZ shareholders that did not take up their rights to new shares.
Acquiring Suncorp bank for $4.9 billion, or close to its book value, is sensible, in theory at least. It’s less of a shock than buying accounting software group MYOB, even if that could’ve spawned a whole new era for the Melbourne-based bank and given it a genuine leg-up on rivals. ANZ’s raising would be the biggest equity capital markets transaction and entitlement offer in Australia this year, surpassing Carsales.com’s $1.2 billion underwritten rights issue that launched in late June. Carsales, advised by Goldman Sachs, Morgan Stanley and UBS, opted for a non-renounceable deal.
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