Kier launches £264m rights issue to stave off balance sheet disaster

By Hamish Champ2018-11-30T15:06:00

Contractor’s shares lose a third of their value as firm appeals to shareholders for cash

Kier is looking to raise more than a quarter of a billion pounds to bolster its balance sheet through a rights issue, a move which has led to its shares diving by more than 30%.

The contractor, which reported average month-end net debt of £375m at the close of its last financial year in June, said the £264m rights issue was being tabled “to reinforce [our] strong positions in growing markets over the long-term” and better position the firm in the light of what it called “tighter credit markets and more stringent tender pre-qualification requirements”.

It said net proceeds of the 409p-a-share issued – a 34% discount to yesterday’s closing price – would help it speed up its net debt reduction plans and strengthen its balance sheet.

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