Kier to raise £241m in share placing
Construction and infrastructure services group Kier said on Thursday that it plans to raise around £241m in a share placing to provide it with the "the financial and operational flexibility to continue to deliver on its strategic objectives".
Kier will place just over 280m shares at 85p each. The issue price is a 17% discount to Kier’s closing share price on Wednesday.
The company said it will use the proceeds to immediately reduce net debt and facilitate "prudent" investment in the business to allow the group to drive "sustainable, profitable organic growth".
Chief executive officer Andrew Davies said: "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."
Last month, the company announced that it was selling Kier Living for £110m. It said at the time that the sale would materially reduce net debt and the volatility of its working capital.