Baker & McKenzie Advises Sims Metal Management on $475 million Capital Raising
Deal Announcement
December 2, 2009
Sydney, Australia, 2 December 2009 – Baker & McKenzie has advised Sims Metal Management (ASX: SGM) on its A$475 million equity raising. The raising, offered at a price of A$21 per share, comprises both a fully underwritten A$400 million institutional placement and a non-underwritten share purchase plan targeting A$75 million. The institutional placement was completed on 26 November. The share purchase plan was made available to eligible shareholders on 30 November 2009.
In addition to strengthening its financial flexibility, the funds raised will allow Sims to continue to pursue its growth agenda for both its Metal Recycling division and its Sims Recycling Solutions business.
In Sydney, the Baker & McKenzie team was led by partner David Holland, together with Andrew Reilly (on US law), and Craig Roeder and Chris Bartoli from Baker & McKenzie's Chicago office.
The capital raising involved an offer to place ordinary shares to certain existing US institutional shareholders and was unusual in that it included registration rights for American Depositary Shares that could be traded on the New York Stock Exchange, where Sims is also listed.
Commenting on the equity raising, Baker & McKenzie partner David Holland said: "We are very pleased to be advising Sims in this important capital raising. We have advised Sims on many of its major transactions, including its merger with Metal Management Inc. and the listing of its securities on the NYSE. We are happy to be assisting again as the company continues to grow and capitalises on the opportunities that arise from the global financial crisis."