20th Jan 2014 16:22
LONDON (Alliance News) - GCP Infrastructure Investments Ltd Monday said it is seeking to raise GBP75-100 million in a C share issue, with scope for an additional capital raising by the issuance of a further 100 million ordinary shares.
GCP Infrastructure, which in December said it was considering a capital raising, said it intends to raise the GBP75-100 million through an open offer, placing and offer for subscription of up to 100 million C shares at GBP1.00 per C share and the creation of a placing programme for its ordinary shares.
Neither the issue nor the placing programme will be underwritten.
Gravis Capital Partners LLP, GCP's investment adviser, has identified "significant opportunities" in the infrastructure debt market, which according to GCP is the reason behind the capital raising.
"The directors recognise the importance of pre-emption rights to shareholders and consequently intend that C shares accounting for approximately GBP50 million of the Issue will be offered to existing shareholders at the issue price in relation to the Issue of GBP1.00 per C share by way of an open offer," GCP said in a statement.
GCP said the capital raising will have a number of benefits for shareholders, as they will be able to increase their interest in the company without incurring dealing costs, stamp duty or paying the current market premium. The share issuance will also allow it to invest in a number of targets, diversifying its portfolio, as well as to increase the company's market capitalisation which it said will help to make the company "more attractive" to a wider shareholder base.
The C shares will be converted to ordinary shares within six months of being admitted to trading. The company expects them to be admitted to trading on March 18, and said the conversion would result in higher liquidity in its shares with fixed running costs to be spread across a wider shareholder base.
A prospectus for the issue and placing is expected to be be published on or around February 12, according to the company.
Any issuance of a further 100 million ordinary shares will be carried out in order to cover the costs and expenses of the placing, according to GCP. GCP said it doesn't intend on issuing any ordinary shares under the placing programme until after the C shares are converted.
On December 20, GCP issued proposals to purchase the shares it doesn't already own in majority-owned subsidiary GCP Infrastructure Fund Ltd as part of a wider reogranisation.
GCP said it expects to publish a separate prospectus on or around February 3 regarding the reorganisation.
GCP shares were Monday quoted at 111.50 pence, down 2.00 pence, or 1.8%.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
GCP Infrastructure Investments