19 February 2009
Low & Bonar PLC – Proposed Placing and Open Offer and Capital Reorganisation to raise net proceeds of £30.0 million
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The Board of Low & Bonar PLC (“Low & Bonar” or the “Group”) today announces a fully underwritten Placing and Open Offer to raise net proceeds of approximately £30.0 million, which will be used to reduce net indebtedness. The Placing and Open Offer is subject to approval by shareholders of certain related matters at a General Meeting to be held on 11 March 2009.
The Group’s audited results for the year ended 30 November 2008 have also been released today in the accompanying announcement.
Highlights
- Placing and Open Offer of approximately 132.5 million Open Offer Shares at the Issue Price of 25 pence per Open Offer Share, to raise net proceeds of approximately £30.0 million. The Issue Price represents a discount of 18.0% to Low & Bonar’s Closing Price on 18 February 2009. The Open Offer Shares to be issued will represent approximately 46% of the Company’s enlarged number of issued Ordinary Shares following the Placing and Open Offer.
- The net proceeds will be used to improve significantly the financial position and future prospects of the Group and allow it to be ready to implement its organic growth initiatives and to take advantage of opportunities emerging from the current market environment.
- The Group is also undertaking a Capital Reorganisation, for which the approval of Shareholders is being sought, which will result in each existing Ordinary Share being split into one New Ordinary Share with a nominal value of five pence and a Deferred Share with a nominal value of 20 pence. The Open Offer Shares will be New Ordinary Shares.
- The Placing and Open Offer is being fully underwritten by the Placing Agents, who are acting as joint bookrunners, placing agents and underwriters to the Company in relation to the Placing and Open Offer.
View the full announcement (in PDF format).