23rd Dec 2025 09:43
(Alliance News) - Videndum PLC on Tuesday said a planned refinancing will, if successful, see current shareholdings "very significantly diluted", while completion is also not guaranteed.
In response, shares in the London-based provider of broadcasting hardware and software plummeted 54% to 14.20 pence each in London on Tuesday. They are down 91% over the past year.
Videndum said the main components of a refinancing proposal have now been agreed in-principle with the revolving credit facility lenders and its two largest shareholders.
This comprises a firm placing, placing and open offer to raise around GBP70 million, backed by its two largest institutional shareholders and the exchange of GBP23 million of RCF debt for shares in Videndum for Polus Capital, a private credit lender.
In addition, Videndum plans to repay GBP50 million of the group's existing revolving credit facility, with the balance of the RCF to be restructured.
As a result of the refinancing, pro-forma net debt as at November 30 would have been around GBP52 million, including GBP26.5 million of finance leases, representing a reduction in net debt of more than GBP90 million.
However, the refinancing remains subject to the finalisation of terms, credit and/or investment committee approvals and agreement of documentation.
Videndum said any share issue would be "very significantly below" their current nominal value of 20p per share.
"While the refinancing will allow for existing shareholders to participate in the equity raise, the company expects that the value attributable to existing shareholders in respect of their current shareholdings will be very significantly diluted," it added.
Further, if the refinancing fails to complete, Videndum said it expects lenders will pursue an alternative transaction to preserve the ability of the group to trade as a going concern.
"It is likely that such a transaction would result in no recovery for existing shareholders," the firm said.
By Jeremy Cutler, Alliance News reporter
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