Driver Group Launches Discounted Placing To Raise GBP8 Million (ALLISS)

LONDON (Alliance News) - Driver Group PLC on Friday laid out proposals to raise up to GBP8 ...

Alliance News 17 February, 2017 | 5:29PM
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LONDON (Alliance News) - Driver Group PLC on Friday laid out proposals to raise up to GBP8 million through a discounted placing so it can pay down its debt and to accelerate the next phase of its strategic plan.

The construction and engineering firm intends to place up to 20 million shares at 40 pence each, a 15% discount to the closing share price on Thursday. As a result, shares dropped by an equal amount on Friday to close at 40p per share.

The company said the proceeds will be used to "reduce outstanding borrowings, to accelerate the delivery of the next phase of the strategic plan and to enable Driver to capitalise on growth opportunities within its core business".

In addition, a subsequent open offer to raise up to a further GBP500,000 was proposed on a 1-for-26 share basis. Both the placing and open offer need shareholder approval at a general meeting, with a date expected to be set shortly.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

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