UTV rights issue to raise £50m
- Published: 04 June 2008 09:40
- Author: Chris Curtis
- More by this Author
- Last Updated: 04 June 2008 09:50
TalkSport owner UTV is planning to slash its debt by raising just under £50m through a rights issue.
The company will offer existing shareholders the opportunity to acquire two new shares at 130p each for every three shares they already hold. The offer price represents a 39% discount to the closing price of UTV shares yesterday and will raise £49.9m.
The rights issue is a piece of financial engineering that will allow the company to reduce its level of debt. This has increased following a series of acquisitions, the most recent being Irish radio station FM 104.
UTV had planned to raise the cash during the summer but has brought it forward because of the "prevailing and potentially worsening financial market conditions".
The company, which also runs the Northern Irish ITV franchise, said it retained its "cautiously optimistic outlook for this year".
The rights issue has been fully underwritten by the joint underwriters Numis and Goodbody Stockbrokers.
