SYDNEY: Topco, the proposed merged entity of Washington H. Soul Pattinson and Company Limited (ASX: SOL) and Brickworks Limited (ASX: BKW), has secured full equity funding of approximately A$1.4 billion, marking a major milestone ahead of the shareholder vote on the strategic merger.
The funding was finalized through a series of conditional placements, including a recently completed A$220 million commitment at no discount to Soul Patts’ last closing price of A$42.61. The placement was fully underwritten by Aitken Mount Capital Partners and is contingent only on the implementation of the merger schemes.
The capital raise, initially announced on June 2, was accelerated due to strong investor demand. In total, Topco has received commitments for 34 million shares through three tranches:
- 14.9 million shares at A$36.93 per share,
- 5.2 million shares at A$42.61 per share,
- 14 million shares under a forward agreement with UBS, with 5.6 million priced at A$42.26 and the remainder to be priced post-scheme meeting.
The proceeds will be used to repay a significant portion of Brickworks’ outstanding debt, settle other liabilities including Soul Patts’ convertible bond, and cover transaction-related costs such as stamp duty.
“This is a key milestone that gives us maximum flexibility and certainty as we continue to advance the proposed merger,” said Todd Barlow, CEO and Managing Director of Soul Patts. “It reflects strong investor support and reinforces our confidence in the long-term value creation for all shareholders.”
Brickworks CEO Mark Ellenor echoed the sentiment, stating, “The successful capitalisation of Topco puts the merged entity in a strong position from day one. With the equity now in place, we are well set to deliver on the strategic benefits of the merger, backed by a simplified balance sheet and clear growth agenda.”
The merger aims to create a diversified investment powerhouse with exposure to listed equities, private markets, structured yield, property, and industrial manufacturing. Both companies have long histories on the ASX—Soul Patts since 1903 and Brickworks since 1962—and have built reputations for delivering consistent shareholder returns.