Kier looks to raise £241m from share placing
Construction firm Kier today said that it would seek to raise £241m from the placing of 280m new shares in the FTSE 250 company.
Priced at 85p per share, the raise will allow the infrastructure group to strengthen its balance sheet and refinance its existing borrowing facilities.
Along with the sale of Kier Living, the raise will bring in proceeds of around £350m.
In the first instance, the firm said that it would use the proceeds to reduce its net debt and pay off several outstanding balances.
The issue price is a 17.0 per cent discount on yesterday’s closing price of 102.4 pence, Kier added.
Chief executive Andrew Davies: “Today’s proposed capital raise represents the final milestone in the Group’s strategy to simplify the Group; to improve cash generation; and to strengthen our balance sheet.
“This capital raise will provide Kier with the financial and operational flexibility to continue to pursue our strategic objectives, within our chosen markets, and to facilitate investment in the business to help drive sustainable, profitable organic growth and the achievement of our medium-term financial targets”.