Purchase for US$685 (A$900 million) on a debt free basis – Approx 11.1 times 2005 EBITDA
Achieves an 18% RONA in third full year of acquisition (FY2009)
EPS accretive (before significant items) in first full year (FY2007)
Funding package designed to maintain support for BBB+ credit rating
Gearing expected to be restored to target range 35% - 45% by FY2007
Annualised cost savings of A$90 million are achievable by the end of the third year following the acquisition
Funded by mix of equity, the issue of a hybrid security and existing debt facilities
Total equity raising of approximately A$450 conducted by a pro rata entitlement issue All shareholders have equal ability to participate Underwritten Terms to be announced on or about 21 November concurrent with Orica’s full year results
Total hybrid raising of approximately A$400 million Hybrid issue expected launch date of late January 2006
ORI Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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