Not come across you for awhile but saw you on here. Trust you well. Only dropped in to have an EVN browse after receiving some info during the week on the Ernest Henry trans so thought would post up some bits I have looked into fyi. U prob have all / most of this but haven't read all the posts so thought easier to just put up for u and other holders if ok.
Have a good one & gltah...
Evolution Mining : raising $401m; RBC, Credit Suisse on board
08/24/2016 | 12:06pm EDT
Evolution Mining is raising $401 million in a two-for-15 rights issue on Wednesday.
RBC Capital Markets and Credit Suisse are doing the trade.
Evolution shareholders were offered two new shares for every 15 they already owned.
The deal was priced at $2.05 a share or a 13.4 per cent discount to the theoretical dividend adjusted ex-rights price. Evolution shares last traded at $2.43.
The brokers opened the institutional offer on Wednesday morning, seeking acceptances by Thursday. A shortfall bookbuild was scheduled for Friday.
Proceeds will be used to partially fund Evolution`s acquisition of an economic interest in Glencore`s Ernest Henry operation, according to terms sent to potential investors.
The offer was structured as an accelerated renounceable deal.
Evolution Mining said it would pay $880 million for the interest in Glencore`s Ernest Henry and entered into a strategic alliance with the Swiss commodities trading house. Ernest Henry is located east of Cloncurry in Queensland.
Its understood RBC banker Adam Reid advised Evolution on the acquisition, while his counterpart Justin Grimmond was involved in the equity piece. Credit Suisse co-lead the equity raising.
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Evolution Mining : UBS rates EVN as Neutral
08/24/2016 | 10:31pm EDT
Evolution Mining did a deal with Glencore's Ernest Henry mine in north Queensland. Under the agreed terms the company will get access to 100% of gold production and 30% of copper and silver production from the mine over the next 11 years.
To fund the $880m deal, Evolution has announced a $401m, 2-for-15 pro-rata accelerated renounceable entitlement offer with shares being issued at $2.05/sh. The analysts seem rather lukewarm, noting cash flow will lift on the back of this deal, but balance sheet flexibility has reduced and partnership risk has been added.
UBS also notes management has indicated the next announcement might involve a divesture. Target $2.78. Neutral.
Sector: Materials.
Target price is $2.78.Current Price is $2.43. Difference: $0.35 - (brackets indicate current price is over target). If EVN meets the UBS target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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