Metcash shareholders should by now have received documentation relating to the company’s Share Purchase Plan (SPP). This follows on from the recent $325m institutional placement. Retail shareholders are entitled to apply for up to $15,000 worth of shares at the lower of $3.335 or a 6.4% discount to the volume weighted average share price over the period 17-23 July.
Unless Metcash’s share price increases sharply over the next week, the second of these options is likely to apply. If the average share price over the period is $3.20, for example, then the SPP price will be $3.00.