24th Nov 2020 10:42
(Alliance News) - Greencore Group PLC said Tuesday it has raised gross proceeds of GBP90 million from the placing of 80.4 million shares at 112 pence each.
Shares in the Dublin-based convenience food maker were 6.6% higher in London on Tuesday at 126.69 pence each, giving the company a market capitalisation of GBP563.9 million.
The new shares represent about 18% of Greencore's existing issued share capital.
"The company consulted with a number of its major shareholders prior to the placing and has respected the principles of pre-emption as far as possible through the allocation process. The company is pleased by the strong support it has received from existing shareholders and others," Greencore added.
The new shares are expected to begin trading in London on Thursday. Following admission, Greencore will have 526.5 million shares in issue.
Speaking Monday, Greencore said the placing and subscription will strengthen its balance sheet as it also grapples with a resurgence of Covid-19 restrictions in the UK, which has hit trading in the new financial year.
"Throughout the year we have acted quickly and decisively to put in place comprehensive sets of measures to mitigate the impact of Covid-19 on our business. However, in light of the ongoing uncertainty that is being caused by the current lockdown measures, there is a strong rationale in further strengthening our balance sheet. Today's proposed placing achieves this," Chief Executive Officer Patrick Coveney said Monday.
Greencore added that the fundraise means the company avoid making another round of cost cuts and ensures it can "proactively manage debt levels".
By Paul McGowan; [email protected]
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