5th Jun 2020 10:40
(Alliance News) - Stobart Group Ltd on Friday said it has raised GBP100 million through the placing and open offer of shares at 40 pence each.
The price represents a 42% discount to the Thursday closing price of 69.20 pence.
Shares in the aviation & energy company were trading 34% lower at 46.00 pence each on Friday morning in London, giving it a market capitalisation of GBP172.3 million.
Stobart said the fundraise - announced Thursday and carried out by way of a bookbuild process - included a placing of 200 million shares. Qualifying shareholders also have the option to subscribe for up to 50 million open offer shares on the basis of two open offer shares for every 15 existing shares.
Largest shareholder Toscafund Asset Management LLP agreed to acquire 82.5 million placing shares, taking its stake to 28%. Company directors agreed to subscribe for a total of 796,958 shares, totalling GBP356,000.
The new cash will be used or general corporate purposes, including repayment of certain amounts drawn under the revolving credit facility, support the Aviation and Energy business. Funds will also be used for selective investments including airport infrastructure for post Covid-19 world.
"We are delighted to have received support from both our existing shareholders and new investors for our equity issue, which will place the group on a sound financial footing going forwards. On behalf of the Board, I would like to express my gratitude to those who have provided their support. We look forward to repaying their trust in us by delivering on our strategic objectives in the coming years," said Stobart Chair David Shearer.
By Ife Taiwo; [email protected]
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