The Atlas Arteria Group (ASX: ALX) share price is withstanding todayâs sell off for a good reason. It’s still in a trading halt.
Indeed, the stock hasnât gone anywhere today as the company undergoes a $3.098 billion capital raise to fund its acquisition of a majority stake in the Chicago Skyway.
The S&P/ASX 200 Index (ASX: XJO) toll road operator is selling shares for $6.30 apiece under a 1 for 1.95 entitlement offer.
The Atas Arteria share price last traded on Monday, closing at $7.81.
Letâs take a closer look at whatâs happening with the approximately $7.5 billion company.
Atlas Arteria share price frozen amid $3b capital raise
The Atlas Arteria share price remains in the freezer on Wednesday as the company undergoes a massive capital raise to fund its $2.9 billion acquisition.
The near-$3.1 billion capital raise will see the company issuing 491.8 million new shares â representing 51.3% of its shares on issue. Newly issued shares wonât be eligible for the companyâs upcoming 20-cent dividend.
The raise will be made up of an institutional entitlement offer that will be conducted today and tomorrow.
Following that, a retail entitlement offer will open on 21 September before closing on 6 October.
New dividend guidance
The company also reaffirmed and added to its dividend guidance. The company expects to pay out 40 cents per share in 2022 and the same amount in 2023. It says thatâs âa sustainable level going forwardâ.
It expects future dividends to be supported by periodic capital releases from Skyway, given its “considerable debt capacity”.
The company anticipates it will receive at least US$230 million in capital releases from Skyway over the next two years. That represents approximately 23 cents per share.
On top of that, thereâs the potential to regear every four to five years as coverage ratios increase while maintaining headroom to investment-grade credit metrics.
Atlas Arteria expects to behold proceeds from capital releases on its balance sheet before distributing them gradually to shareholders over time to smooth dividends.
The post Atlas Arteria share price remains on ice amid $3 billion cap raise appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of September 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Atlas Arteria share price halted amid $2.9 billion acquisition
- Why is the Atlas Arteria share price hitting the headlines on Monday?
- Atlas Arteria share price drives higher on record dividend guidance
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/HJ8Oeg0
Leave a Reply