21st Nov 2013 11:23
LONDON (Alliance News) - Shares in Independent News & Media PLC dropped 13% Thursday after it announced a firm placing, placing and an open offer to raise EUR43 million as it continues its restructuring process to pay off large volumes of debt.
The newspaper and media company said that it would raise the EUR43 million through the issue of 614.3 million shares at a price of 0.07 euro cents each. This will include EUR30.2 million through the firm placing of 430.8 million shares, and EUR12.8 million through a one-for-three placing and open offer resulting in the issue of 183.5 million shares.
The issue price shows a 47.2% discount on the company's closing price of 0.1325 euro cents per share on November 19, Independent said.
Funds raised are committed or underwritten through placing commitments, irrevocable undertakings and underwriting commitments.
The company said that, if completed, this capital raise would constitute the final stage of its restructuring to reduce its core debt from EUR439.6 million to EUR118 million, and reduce its pension deficit by around EUR110 million.
The completion of the firm placing, placing and open offer are subject to shareholder approval, and will be considered at an extraordinary general meeting on December 16.
Key shareholders Irish billionaires Denis O'Brien and Dermot Desmond have committed to participate in a total of EUR29.6 million in the placing. As a result Desmond's stake in the company will rise to 15% from 6.4%.
Shares in Independent News & Media were trading down 13% at 0.115 euro cents.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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