AustralianSuper ups Syrah stake to 49.6%

AustralianSuper has increased its stake in Syrah Resources to 49.6%, acquiring around 356 million additional shares through a retail entitlement offer.

Syrah said the shares represented entitlements that were not taken up by eligible retail shareholders under the retail entitlement offer and the entitlements of ineligible foreign retail shareholders, and so were allotted to the $410 billion super fund.

Syrah said the retail entitlement offer raised approximately $61 million, and together with the institutional component, raised a total of $104 million.

As a result of the equity raising, the conversion price of AustralianSuper's Series 4, 5 and 6 convertible notes was adjusted from $1.3686 to $1.1312.

Syrah said proceeds from the raise, in combination with a non-binding strategic funding proposal, will be primarily used for funding Vidalia, its active anode material facility that aims to be the first major integrated ex-China producer of natural graphite active anode material for electric vehicle batteries.

It said the equity raise will also help ramp up Syrah's Balama graphite operation in Mozambique.

Syrah said it is also advancing the implementation of the non-binding strategic funding proposals with the US International Development Finance Corporation, the US Department of Energy and AustralianSuper.

Syrah aims to be the world's leading supplier of superior quality graphite and anode material products, working with customers and the supply chain to add value in battery and industrial markets.

AustralianSuper has long been Syrah's largest shareholder, having nominated Robert Edel to the Syrah board last year.