Orica Ltd
ORI: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$83.90 | Rcbcv | Djyjsgy |
Corporate Action: Orica to Acquire Cyanco; We Recommend Participation in the Associated SPP
No-moat Orica is acquiring US sodium cyanide manufacturer and distributor Cyanco Intermediate 4 Corp., or Cyanco, for USD 640 million on a cash-free, debt-free basis. The firm serves the gold mining industry in the US, Canada, Mexico, Latin America, and Africa. Orica will fund the acquisition from existing debt facilities, a AUD 400 million placement already completed, and a AUD 65 million share purchase plan, or SPP.