{"id":1611,"date":"2018-12-20T08:35:13","date_gmt":"2018-12-20T08:35:13","guid":{"rendered":"https:\/\/cita.co.uk\/news\/?p=1611"},"modified":"2018-12-20T08:35:13","modified_gmt":"2018-12-20T08:35:13","slug":"underwriters-hit-as-kier-250m-rights-issue-flops","status":"publish","type":"post","link":"https:\/\/cita.co.uk\/news\/underwriters-hit-as-kier-250m-rights-issue-flops\/","title":{"rendered":"Underwriters hit as Kier \u00a3250m rights issue flops"},"content":{"rendered":"

Bank underwriters are facing heavy losses on Kier group’s \u00a3250m rights issue after just over a third of shares were taken up.<\/p>\n

Shares were trading at 385p yesterday, below the 409p issue price leaving the syndicate of five lenders facing losses even after \u00a314m fees are taken into account.<\/p>\n

When Kier chief executive Haydn Mursell announced the fundraising expedition to pay down its \u00a3650m debt mountain, existing shareholders were offered the chance to buy its stocks at a 34% discount, but this was wiped out as shares plummetted on the news.<\/p>\n

Mursell said:\u00a0<\/span>“<\/span>Following the completion of the \u00a3250m rights issue, Kier enters 2019 with a strong balance sheet which puts us in an excellent competitive position.<\/span>“<\/span><\/p>\n

When the rights issue plan was unveiled last month, Kier said it had commitment for around 32% of the 64m shares to be taken up. This morning the firm revealed this had edged up to 38% of the issue.<\/p>\n

Now underwriters\u00a0have today to place shares with other institutional investors or be left with equity stakes in the business.<\/p>\n

An analyst told the Enquirer<\/em>: “This is clearly a set bank for Kier’s banks.<\/p>\n

“It looks like the banks could be left holding a large chunk of shares in Kier for some time.<\/p>\n

“Naturally this will put Kier’s management under more scrutiny going forward.”<\/p>\n

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from Construction Enquirer https:\/\/ift.tt\/2SdyAXd<\/p>\n","protected":false},"excerpt":{"rendered":"

Bank underwriters are facing heavy losses on Kier group’s \u00a3250m rights issue after just over a third of shares were taken up. Shares were trading at 385p yesterday, below the 409p issue price leaving the syndicate of five lenders facing losses even after \u00a314m fees are taken into account. When Kier chief executive Haydn Mursell […]<\/p>\n","protected":false},"author":1,"featured_media":146,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[9],"class_list":["post-1611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-enquirer"],"_links":{"self":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/1611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1611"}],"version-history":[{"count":1,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/1611\/revisions"}],"predecessor-version":[{"id":1612,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/1611\/revisions\/1612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media\/145"}],"wp:attachment":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}