suncorp metway to raise up to a$1.3b

SYDNEY (Dow Jones)--Banking and insurance group Suncorp-Metway Ltd. (SUN.AU) said Thursday it plans to raise at least A$900 million via capital raisings, joining a fast-expanding list of Australian companies to tap investors for funds.

Brisbane-based Suncorp said it plans a A$390 million placement, and an underwritten institutional entitlement offer of A$410 million. It also plans to raise A$100 million through an underwritten dividend reinvestment plan.

The group also flagged a retail shareholder offer, which could see it raise a total of A$1.3 billion. It will place shares at A$4.50 a share, a 37% discount to its last traded price of A$7.13.

The group also said its chief executive, John Mulcahy, will stand down from the role, and said net profit for the six months to Dec. 31 is likely to be A$250 million-A$270 million, or A$210 million-A$230 million if its reinsurance position isn't accepted by all its reinsurers.