Macquarie raises $400 million, comes out of a trading halt, shares soar

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Macquarie Group has successfully completed a $400 million capital raising to partly pay for the $8.2 billion purchase of vehicle finance unit Esanda.

CFO Patrick Upfold says the institutional placement will result in the issue of 5 million new shares at $80 each.

“The placement was significantly oversubscribed receiving strong support from existing and new investors both in domestic and international markets,” he says.

“This outcome reflects the positive response from our shareholders to the Esanda dealer finance acquisition, as well as the continued growth across our existing businesses.”

Retail shareholders in Australia and New Zealand will also have an opportunity to participate in a capital raising by way of a share purchase plan. Further details will be revealed following the six month results announcement on October 30.

Macquarie is buying the ANZ Bank’s Esanda vehicle finance unit which will be folded into Macquarie Leasing, increasing Macquarie’s total motor vehicle finance portfolio to about $17 billion, up from $9 billion.

The bank is using a mixture of capital raising, debt and internal resources to fund the acquisition.

Macquarie’s shares jumped more than 3% to be above the placement price at $80.34 when they came out of a trading halt.

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