Seprod closed trading last Friday at $35.63 for a total market value of $18.4 billion.
The increase is a necessary first step in Seprodâs bid to buy 100 per cent of Facey Commodity's Consumer division. A portion of the new shares will be issued to Musson's subsidiary, Facey Group Limited as part payment for Facey Consumer.
Seprod CEO Richard Pandohie says Facey Group will receive a mix of cash and shares for the acquisition. It is not yet clear how much of the authorized shares will be used in the transaction.
Pandohie says that with this step out of the way the process will continue to arrive at proper company valuations.