Speedy meets £100m target
ALL 35 million shares not taken up by existing shareholders in Speedy Hire’s rights issue, have now been successfully placed.
The remaining shares in the tool hire company were sold at 24.5p per share – 1.5p more than the price offered to existing shareholders.
The net proceeds from the sale of these remaining shares – 1.5p for each share – will be paid to those shareholders who didn’t take up rights issue on a pro rata basis.
On Friday morning, the Newton-le-Willows company announced that 92% of the 458.6 million new shares it issued had been take up by shareholders, raising around £97.4m before expenses.
The company unveiled its £100m rights issue in May, in a bid to reduce its debt pile. It offered shares at 23p each – 86% lower than the price its shares closed at the day before – to raise £105m (£100m net of expenses).
Speedy said the fundraising would strengthen the group’s balance sheet, reduce net debt and provide financial and operational flexibility should its core markets continue to weaken.
The company, which has been severely affected by the collapse of the construction industry, announced a £70m pre-tax loss in May. Net debt stood at £248.4m.
