UPDATE: Banks Place Remaining Shares From Marks & Spencer Rights Issue

(Alliance News) - Marks & Spencer Group PLC on Thursday confirmed the underwriters of its rights ...

Alliance News 13 June, 2019 | 11:10AM
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(Alliance News) - Marks & Spencer Group PLC on Thursday confirmed the underwriters of its rights issue have found subscribers for the remaining shares.

Earlier Thursday, M&S said its 1-for-5 rights issue had received acceptances of 85%. Of the 325 million shares offered, M&S has got acceptances for 276.7 million.

The underwriters of the rights issue are Morgan Stanley & Co International PLC, BNP Paribas, HSBC Bank PLC, and Shore Capital Stockbrokers Ltd.

Had they not found any subscribers for the remaining 48.2 million shares, they would have had to take them up themselves.

The rights issue was announced in late May, with M&S seeking to raise GBP601.3 million, issuing 325 million new shares at 185 pence each. This was a 32% discount the its closing price the day prior to the announcement.

Shares were 2.3% lower on Thursday morning at 214.14p.

The fundraising was launched to finance the creation of a 50/50 joint venture with Ocado, announced in February, which will see M&S acquire half of Ocado's UK retail business.

In a separate announcement, US grocer Kroger Inc said it has broken ground on its first customer fulfilment centre in south-west Ohio in its partnership with Ocado. The CFC, or "shed", will cost USD55 million, and it plans 20 further sheds in the US.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Ocado Group PLC 1,137.50 GBX -1.90 -
Marks & Spencer Group PLC 218.70 GBX 1.25 -
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