9th Apr 2020 10:44
(Alliance News) - Wagamama-owner Restaurant Group PLC on Thursday said it raised GBP57 million through a share placing.
The pub and restaurant chain operator late Wednesday said it was launching a fundraise to ensure "sufficient liquidity" as trading comes under pressure by the Covid-19 outbreak.
The company said 98.2 million shares were placed at 58.00 pence each. Another 100,000 shares were subscribed by directors. The new shares, priced at a 3.2% discount to Wednesday's close, equal about 20% of the total shares before the placing.
The stock was trading 0.7% lower at 59.50p each in London on Thursday morning.
The placing was conducted by JP Morgan Cazenove.
Restaurants and pubs have been forced to close in the UK as part of government-imposed lockdown measures made to halt the spread of the deadly virus.
Restuarant Group said on Wednesday that it believes footfall in its venues will recover slowly throughout the rest of 2020 following the lifting of lockdown restrictions. It predicts that group sales will decline by around 50%, with like-for-like sales expected to fall by about 45%.
It added that it has implemented cash-saving measures such as reducing capital expenditure to no more than GBP30 million for the year, taking advantage of the government furlough scheme, and placing its Food & Fuel and Chiquito chains into administration.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
RTN.L