RNS13 May 2021 08:38
Proposed c.£241 million Capital Raise by way of a Firm Placing and Placing and Open Offer of c.284 million New Ordinary Shares at 85 pence per share
Kier, a leading infrastructure services and construction group, today announces that it proposes to raise gross proceeds of approximately £241 million by way of a fully underwritten Firm Placing and Placing and Open Offer and separate Directors' Subscription (the "Capital Raise") of, in aggregate, 284,049,829 New Ordinary Shares at an issue price of 85 pence per New Ordinary Share (the "Issue Price").
The Capital Raise, which together with the recent sale of Kier Living Limited, will raise approximately £351.4 million of gross proceeds for the Group. The proceeds will provide the Group with the financial and operational flexibility to continue to deliver on its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.
The Firm Placing and Placing and Open Offer, which have been fully underwritten by Numis Securities plc ("Numis") and Peel Hunt LLP ("Peel Hunt"), are being conducted by way of an accelerated bookbuild process (the "Bookbuild") which will be launched immediately following this announcement (the "Announcement"). The Firm Placing and Placing are subject to the terms and conditions set out in the Appendix to this Announcement (which forms part of this Announcement) (the "Appendix"). Numis and Peel Hunt are acting as joint bookrunners and joint brokers to the Company in connection with the Capital Raise (the "Joint Bookrunners"). Rothschild & Co is acting as financial adviser and sponsor to the Company.
Key Capital Raise Highlights:
· Intention to raise gross proceeds of approximately £241 million through a Firm Placing and Placing and Open Offer:
o £120.6 million to be raised through the Firm Placing through the placing of 141,851,386 Firm Placing Shares; and
o £120.6 million to be raised through the Placing and Open Offer through the placing of 141,851,386 Open Offer Shares.
· In addition, certain Directors (or their closely associated persons) are expected to subscribe for approximately £0.3 million in aggregate of New Ordinary Shares at the Issue Price (the "Director Subscriptions").
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