(Alliance News) - De La Rue PLC on Monday said it has raised GBP100 million through the issue of 90.9 million shares at 110 pence each.
Shares in the banknote printer were trading 0.6% higher at 138.27p each on Monday afternoon in London, giving it a market capitalisation of GBP206.7 million.
The fundraise comprised a placing of 45.4 million shares at 110p to raise GBP50 million and an open offer of 45.5 million shares at the same price. The open offer received acceptances from shareholders in respect of 35.6 million open offer shares, representing around 78% of the shares on offer. In addition, the company received applications under it excess facility for 14.3 open offer shares, representing 31% of the shares offered.
"The equity raise will provide the company with the financial and operational flexibility to ensure the success of the turnaround plan which we announced earlier this year. With this capital we will be able to strengthen our balance sheet, reduce our costs and invest in the exciting growth opportunities we see in authentication, polymer banknote production and security features," said Chief Executive Clive Vacher.
In June, De La Rue said it will invest GBP15 million from proceeds of the placing to "double the Currency division's capacity for polymer production". It added that it expects to invest GBP35 million in its Authentication division and GBP16 million into its restructuring which was announced as part of its turnaround plan in February.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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De La Rue (DLAR)
