Metcash SPP at 8% discount – is it worth it?

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Question asked 10/02/2024

Metcash SPP at 8% discount – is it worth it?

Hi James & the MM team So Metcash have unveiled their acquisition plans and a capital raising plus a small SPP for retail shareholders. You commented in the Monday afternoon note that you thought the deal stacks up, and it does look pretty good to this shareholder. The SPP price of $3.35 is an 8% discount to the share price (now only 6.5% based on Tuesdays price of $3.58). Would that be enough of a discount to persuade you to participate in the SPP and top up your holding if you were a retail shareholder? Cheers, Carl

Answer

Hi Carl,

Simple answer is yes. Assuming the price holds before the SPP closes then it looks attractive. For a larger cap stock like this that we like going forward, we think any sort of discount is appealing.

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Metcash (MTS)

LAST UPDATED 09/02/2024 11:38

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