Metro Raises $23.9m, Amari Metals Takes 51% Stake in Recapitalisation
Metro Performance Glass has successfully closed an oversubscribed rights offer, raising $23.9 million to support its turnaround and growth strategy, with Amari Metals securing a 51% stake.
- Rights offer oversubscribed at 120%, raising $10.7 million
- Top-up placement to Amari Metals raises additional $15 million
- Amari Metals to hold 51% shareholding post-recapitalisation
- Debt forgiveness and new banking package to halve bank debt
- No underwriters required to take up shares due to strong shareholder support
Strong Shareholder Backing Drives Successful Capital Raise
Metro Performance Glass Limited (Metro) has completed its pro rata renounceable rights offer with remarkable success, attracting applications totaling $10.7 million; 120% of the targeted amount. This strong demand not only led to oversubscription but also meant that the underwriters were not called upon to fulfill their commitments, a clear vote of confidence from shareholders in Metro’s strategic direction.
Recapitalisation and Strategic Partnership with Amari Metals
The rights offer forms a key part of Metro’s broader recapitalisation plan, which includes a top-up placement to Amari Metals Australia Pty Ltd. This placement raises an additional $15 million, enabling Amari to secure a controlling 51% stake in the company. The combined capital raise of $23.9 million represents the maximum amount sought and positions Metro for a more stable financial footing.
Debt Reduction and Operational Focus
Alongside the capital raise, Metro has negotiated debt forgiveness and a new three-year banking package that will reduce its bank debt by more than half. Managing Director Simon Bennett highlighted that this financial restructuring will allow Metro to concentrate on its ongoing turnaround efforts amid challenging market conditions. The company can now move past previous considerations of selling its Australian Glass Group and other refinancing options, focusing instead on operational performance and shareholder value creation.
Looking Ahead
The new shares from the rights offer are expected to be allotted and commence trading shortly, marking a new chapter for Metro. The company’s leadership expressed gratitude for the overwhelming shareholder support, which saw 95% backing the proposal and 67% exercising their rights. This strong endorsement underscores confidence in Metro’s future prospects and the strategic partnership with Amari Metals.
Bottom Line?
With its recapitalisation complete, Metro is poised to halve its debt and sharpen its focus on growth and operational excellence.
Questions in the middle?
- How will Amari Metals’ majority ownership influence Metro’s strategic decisions?
- What are the detailed terms of the debt forgiveness and new banking package?
- How quickly can Metro translate this financial stability into improved operational performance?
