Last checked at 6 Apr 2020 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION.
WH Smith PLC ("WH Smith" or the "Group")
Response to Press Speculation
6 April 2020
WH Smith notes recent press comment regarding the possibility of the Group undertaking an equity issue.
Since the Group's trading statement on 12 March 2020, WH Smith, along with many businesses, has seen a substantial downturn in economic activity resulting from the Covid-19 pandemic.
The duration of the Covid-19 related crisis is uncertain and, as a result, the Group has secured new lending facilities of £120m, which will strengthen its balance sheet, working capital and liquidity position. The new financing arrangements are conditional on raising new equity. As a result, the Group is in an advanced stage of preparation for an equity issue of a maximum of 13.7% of its issued share capital by way of a placing. These financing arrangements, coupled with a broad range of mitigating actions to manage the cost base and cash-flow, will provide sufficient liquidity to deal with this most challenging of trading environments.
A further announcement will be made as and when appropriate.
Important notices
This Announcement contains inside information and is issued on behalf of the Group by Ian Houghton, Company Secretary. This Announcement is issued at 7.00am BST on 6 April 2020.
This Announcement is not intended to, and does not constitute, or form part of, any offer to sell or issue or any solicitation of an offer to purchase, subscribe for, or otherwise acquire, any securities or a solicitation of any vote or approval in any jurisdiction.