The Australian Securities and Investments Commission (ASIC) has commenced civil proceedings in the Federal Court against ANZ Banking Group, alleging the bank continuously breached disclosure obligations in relation to a $2.5 billion institutional share placement it undertook in 2015.
In August 2015, ANZ issued a release to the Australian Securities Exchange (ASX) in respect of an ‘Institutional Placement and share Purchase Plan’ where it aimed to raise $3 billion.
The bank later issued the ASX with a release that it had raised $2.5 billion through the placement of 80.8 million shares at the price of $30.95 per share, but it failed to notify the ASX that $791 million of the raised equity capital was to be acquired by its underwriters rather than placed with investors.
ASIC will seek a declaration that the bank breached its continuous disclosure obligation under section 674(2) of the Corporations Act, as well as a pecuniary penalty order.
