£241m raise sends Kier shares to 52-week high
Property group Kier, which retains major Cambridge and East of England operations despite a major restructuring, has completed a £241.2 million capital raise.
The achievement boosted its UK share price more than 20 per cent to a 52-week high of 123.20p.
The move wipes out a rubble-pile of debt. Industry media say around £204m of the money raised will repay part of a revolving credit facility and settle loans. The company will retain £16.9m on its balance sheet in cash reserves.
CEO Andrew Davies was upbeat and clearly backed in his sentiments by long-suffering shareholders.
He said: “The capital raise represents the final milestone in Kier'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.
“On behalf of the board, I would like to thank our existing shareholders for their continued support and welcome new investors who will become shareholders as a result of this capital raise.”