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ASIC takes on ANZ in Fed Court

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.




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