Aug 31 (Reuters) - IOOF Holdings Ltd (IFL) : ACQUISITION OF MLC...

Aug 31 (Reuters) - IOOF Holdings Ltd (IFL) :

• ACQUISITION OF MLC AND RESULTS ANNOUNCEMENT
• ENTERED INTO TRANSACTION AGREEMENTS WITH NAB TO ACQUIRE 100% OF NAB'S WEALTH MANAGEMENT BUSINESS (MLC) FOR $1,440 MILLION,
• ACQUISITION IS EXPECTED TO DELIVER IN EXCESS OF 20% EPS ACCRETION ON AN FY21F PRO FORMA BASIS
• IOOF IS ACQUIRING GODFREY PEMBROKE AND MLC BRANDS BUT WILL NOT BE ACQUIRING MERITUM, APOGEE OR GARVAN BRANDS
• NAB WILL RETAIN AFSL HOLDERS THAT OPERATE MLC'S ADVICE BUSINESS
• TARGETING PRE-TAX SYNERGIES OF $150 MILLION PER ANNUM BY THIRD FULL YEAR OF OWNERSHIP ON A RUN-RATE BASIS FROM DEAL
• RESTATING ITS COMMITMENT TO ITS DIVIDEND POLICY OF PAYING OUT 60 - 90% OF UNDERLYING NPAT
• CONSIDERATION WILL BE FUNDED VIA $1,040 MILLION FULLY UNDERWRITTEN INSTITUTIONAL PLACEMENT & ACCELERATED NON-RENOUNCEABLE ENTITLEMENT OFFER
• CONSIDERATION WILL BE FUNDED VIA $250 MILLION OF INCREMENTAL SENIOR DEBT VIA AN UNDERWRITTEN SYNDICATED DEBT FACILITY, AMONG OTHERS
• AS PART OF TRANSACTION, IOOF WILL EXPAND ITS TOTAL DEBT FACILITIES BY $250 MILLION IN TOTAL FACILITY LIMITS
• ENGAGED CITI AND NAB TO UNDERWRITE $920 MILLION OF TOTAL DEBT FACILITIES AS A BACKSTOP TO SYNDICATED FACILITY
• TRANSACTION COMPLETION IS EXPECTED BEFORE 30 JUNE 2021
• UNDERTAKING A FULLY UNDERWRITTEN 1 FOR 2.09 ENTITLEMENT OFFER TO RAISE $588 MILLION, AND A FULLY UNDERWRITTEN $452 MILLION PLACEMENT
• EQUITY RAISING WILL BE CONDUCTED AT $3.50 PER NEW SHARE