MDA Space Upsizes Equity Offering to $819M for CLS Acquisition
MDA has more than doubled off its 52-week low of $15.
Summary
MDA Space increased its bought deal offering to 23M shares at US$35.60, raising ~US$819M — up from the 20M-share, ~US$712M deal announced yesterday. The proceeds fund the C$920M acquisition of a 70% stake in CLS, a satellite data firm. The offering price is a modest 0.4% discount to the last close, signaling solid demand. The deal is not conditional on the acquisition closing; if the CLS deal falls through, proceeds go to general growth. This follows the $1.5B shelf filing and the CLS offer disclosed on July 8. The upsizing and tight pricing suggest strong institutional interest, but the dilution is significant — 23M shares represent roughly 19% of the current float. Closing is expected July 14.
At the time of this announcement, MDA was trading at $35.74 on NYSE in the Technology sector, with a market capitalization of approximately $5B. The 52-week trading range was $15.00 to $49.37. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.