The S&P/ASX 200 Index (ASX: XJO) went up by 0.6% to 6,829 points.
Company announcements were the cause of the biggest movers within the ASX 200.
These are some of the highlights from the day:
Webjet Limited (ASX: WEB)
The Webjet share price fell more than 5% after announcing a convertible note offering.
It said that it has successfully priced its AU$25 million convertible notes which are due in 2026.
The notes will have a coupon of 0.75% per annum, paid on a semi-annual basis. The notes will be convertible into fully paid ordinary shares with an initial conversion price of $6.35 per share, which represents a conversion premium of 22.5% compared to the reference share price of $5.18.
The net proceeds are expected to be approximately $246 million after the deduction of commissions, professional fees and other expenses. The net proceeds are expected to be used to repay $43 million of Webjet’s existing term debt and also fund potential acquisitions.
Webjet managing director John Guscic said:
We are taking advantage of market conditions to proactively manage our balance sheet and the existing term debt. The offering also provides flexibility to pursue leadership in all our businesses. In particular, it places Webjet in a strategically advantaged position in the context of a highly fragmented B2B wholesale bedbank industry, which we believe will change significantly as a result of the pandemic. The Webjet OTA (online travel agency) has already seen meaningful market share growth as Australian domestic travel markets start to return and the offering will provide flexibility to further capture demand as bookings continue to shift online.
It was the worst performer in the ASX 200.
Boral Limited (ASX: BLD)
The Boral share price went up 6.75% after announcing it had completed the sale of its 50% share of USG Boral and it revealed an on-market buy-back.
The USG Boral sale for A$1.33 billion will result in Boral reporting a profit after tax of approximately $450 million.
Some of the money will be used to reduce the net debt position from $1.9 billion to $1.5 billion.
Boral is planning to buy back up to 10% of shares on issue over the next 12 months. The company said it believed the buy-back is the most effective method of returning the surplus capital to shareholders.
The construction business will continue to assess options to distribute any additional surplus capital.
It was the best performer in the ASX 200.
AMP Limited (ASX: AMP)
The AMP share price went up 4.75% today after it finally announced that its CEO was being replaced.
Mr Francesco De Ferrari will be replaced by the Australia and New Zealand Banking Group Ltd (ASX: ANZ) deputy CEO, Alexis George. She will take over in the third quarter of this year.
Ms George has been at ANZ for seven years. She led ANZ’s $4 billion wealth divestment program, including the separation and sale of its life insurance and superannuation businesses. Before that, Ms George had spent ten years at ING.
AMP Chair Debra Hazelton said:
In Alexis George, we have a great leader and strong fit for the future of our company. On any measure, she has outstanding industry experience in wealth management and banking, and is committed to continue the transformation of AMP’s business, and importantly, our organisation’s culture. Alexis will work with our executive team to complete and build on the strategic initiatives started under Francesco’s leadership and take AMP forward to its next phase of growth.
AMP was one of the best performers in the ASX 200.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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