Last checked at 
(Alliance News) - Kier Group PLC on Thursday said it has successfully raised GBP241 million through placing of 284.0 million shares at a price of 85 pence each.
The placing reflects the "final milestone" in the infrastructure services and construction firm's turnaround strategy, with most of the proceeds going towards cutting debt, with GBP16.9 million will be added to the company's cash reserves.
Together with the GBP110 million sale of the Kier Living housebuilding unit announced on April 16, the proceeds will provide financial and operational flexibility, Kier said.
The company has been offloading businesses and paying down debt after years of financial troubles. This saw its share price plunge by more than 90% since the beginning of 2017.
The 85 pence reflects a 17% discount to Kier's closing price on Wednesday of 103.00p, and the placing had been fully underwritten by Numis Corp PLC and Peel Hunt LLP.
Shares in Kier closed 20% higher at 123.20 pence on Thursday in London.
In addition to the placing, the company has invited qualifying shareholders to take part in an open offer for 141.9 million shares, on the basis of seven open offer shares for every eight existing shares held.
"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," said Chief Executive Officer Andrew Davies.
Kier Group now has 446.2 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
