Under the deal, the Orion funds will sell 62.4 million CHESS depository interests over the common shares of Capstone, or the equivalent number of fully paid common shares, at a price of A$9.50 each. The proceeds totalling A$592.8 million will go directly to Orion, and Capstone will not receive any proceeds from the CDI sale.
The CDIs will only be offered to certain eligible investors in Australia, plus other foreign jurisdictions where the distribution of CDIs does not require a prospectus, which would exclude Canada.
At the time of Friday’s announcement, the Orion mining funds held approximately 152.9 million common shares for an approximate 20.3% stake in Capstone. Upon closing of the secondary offering, they would beneficially own 90.5 million shares, or approximately 12.0% of Capstone’s share capital.
As part of the secondary offering, Orion has agreed not to sell any common shares or other securities of Capstone for a…
