The financial services company returned from a trading halt today.
The post MA Financial (ASX:MAF) shares resume trading and leap higher. Here’s why appeared first on The Motley Fool Australia. –
The shares finished the session at $8.84 on Thursday afternoon, up 4.62%.
Let’s look at what played into the MA Financial share price today.
What did MA Financial tell investors?
In its release today, MA Financial told ASX investors it had received strong support for its capital raise of $100 million towards the acquisition of BNK Banking Corp Ltd (ASX: BBC) subsidiary Finsure.
The takeover provides MA Financial lenders with access to a network of 2,000 mortgage brokers and 4,800 loan products.
The company will issue 12.9 million new shares as part of an institutional share placement at $7.75 per share. This provides MA Financial investors with an 8.3% discount on the last closing share price of $8.45 before the trading halt.
The company is also offering a share purchase plan for eligible retail shareholders to purchase up to $30,000 worth of shares.
Commenting on the announcement, joint CEOs Chris Wyke and Julian Biggins said:
We are extremely pleased with the level of interest shown in the Institutional Placement and we thank our existing shareholders for their continued support and we also welcome a number of new institutional investors.
What else did they announce?
MA Financial also had some other news today. The company has signed a contract to buy the Hotel Brunswick in Brunswick Heads, New South Wales for $68 million.
The property, located 25 minutes north of Byron Bay, will be acquired by an investment fund overseen by MA Hotel Management.
Settlement on the hotel is expected to take place in March 2022.
MA Financial share price snapshot
The MA Financial share price has surged nearly 78% in the past 12 months. The value of the company’s shares has dropped by 2% in the past month, but have recovered more than 7% in the past week.
The financial services giant has a market capitalisation of about $1.4 billion.
The post MA Financial (ASX:MAF) shares resume trading and leap higher. Here’s why appeared first on The Motley Fool Australia.
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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 Bruce Jackson.