Hewlett Packard Enterprise reveals USD1.35B public offering
Date
9/12/2024 4:58:16 AM
(MENAFN) Hewlett Packard Enterprise (HPE) announced late Tuesday the details of its public offering of approximately 27 million shares of Class C mandatory convertible preferred stock, valued at USD1.35 billion. Each share in this offering is priced at USD50. Additionally, HPE is offering subscribers a 30-day period to request up to 3 million more shares, which could raise an extra USD150 million if fully subscribed. This move highlights HPE's effort to bolster its financial position through significant capital raising.
The net proceeds from the offering are expected to be about USD1.32 billion, with a potential total of USD1.46 billion if the additional shares are fully taken up. The funds are earmarked primarily to support the costs associated with HPE's planned acquisition of Juniper Networks, including transaction fees and other related expenses. Any surplus from the offering will be allocated towards general corporate purposes, ensuring the company's operational and strategic flexibility.
The subscription for this offering is set to close on September 13, subject to the fulfillment of standard closing conditions. This financial maneuver reflects HPE's strategic focus on strengthening its market position and financing its acquisition strategy while managing its overall capital structure efficiently.
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