Orica completes A$650m raise for Axis buy

4th August 2022 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

KALGOORLIE (miningweekly.com) – Mining solutions provider Orica has completed its A$650-million fully underwritten share placement to fund the acquisition of digital orebody intelligence business Axis Mining Technology.

Orica this week announced the A$350-million deal for Axis, with the acquisition to comprise an up-front cash component of A$260-million and a deferred earn-out payment of up to A$90-million, contingent on financial performance and other conditions.

Orica on Thursday said that 40.6-million shares will be placed to institutional investors at a price of $16 a share.

“We are extremely pleased and thankful for the support we have received from new and existing institutional investors who recognise the compelling strategic benefits of our acquisition of Axis and support our goal of establishing a leading digital solutions platform,” Orica MD and CEO Sanjeev Gandhi said.

“In addition to facilitating the acquisition, the equity raising will allow Orica to fund incremental trade working capital requirements arising as a result of global supply chain dislocations.

“We are excited by the market’s support for Orica’s strategic growth plans as we aim to support our customers’ digital transformation efforts around the world and enhance our capabilities across the mining value chain.”

The company is also planning to undertake a share purchase plan (SPP), aimed at raising a further A$75-million. The SPP will open on August 10 and close on August 26.