TOP NEWS: Galliford Try To Raise GBP158 Million In Rights Issue (ALLISS)

27th Mar 2018 08:52

LONDON (Alliance News) - Housebuilder and construction firm Galliford Try PLC on Tuesday set out its plan to raise GBP157.6 million in a fully underwritten rights issue.

Galliford will raise the proceeds on a 1-for-3 basis in respect of 27.7 million new shares at an issue price of 568 pence per rights issue share, which represents a 33% discount to the theoretical ex-rights price based on the closing middle-market price of 937.5p on Monday.

The issue is fully underwritten by HSBC Bank PLC, Peel Hunt LLP and Barclays Bank PLC.

This comes after Galliford Try in February had said it intended to raise GBP150 million due to additional financial obligations arising from the Aberdeen Western Peripheral Route contract after the collapse of outsourcer Carillion.

Galliford on Tuesday said it continues to make good progress towards resolving AWPR and practical completion of the construction work is expected in summer 2018. Further, despite the issues encountered in relation to AWPR, its 2021 strategy and related financial targets remain unchanged.

"The board also considers that a strengthened financial position for Galliford Try will demonstrate the group's continued and enhanced financial strength and stability to Galliford Try's shareholders, customers, suppliers and other stakeholders and reaffirm the group's capacity to act as a leading partner on significant projects," Galliford Try said in a statement on Tuesday.

Shares in the company were up 0.2% at 939.50p early Tuesday.

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