3i in rights issue
PRIVATE equity giant 3i Group today unveiled a £732m rights issue, which it will use to cut debt and boost its balance sheet.
The group, which has a number of strategic investments in Yorkshire including specialised engineering consultancy AES based in Rotherham, is issuing more than 542m new shares at 135p each, a 60% discount to yesterday’s closing price of 339p.
The company had net debts of £1.1bn at the end of March, has also seen the net valeu of its assets fall as a result of the global downturn.
Chief executive Michael Queen said: “This rights issue builds on a number of actions we have been taking. It will strengthen not only our balance sheet but also our market position and will position us well to take advantage of investment opportunities as they emerge.”
3i’s net asset value per ordinary share fell to £4.96 in the year to the end of March 2009 from £10.77 in 2008.
Total assets under management fell to £8.02bn from £9.79bn. The company said that given the rights issue it would not be paying a final dividend.
