Kier completes shares issue to progress Mouchel takeover
Nearly 92 per cent of the underwritten rights issue shares on offer were taken up raising £311m, with investment banks J.P. Morgan Securities and Numis Securities taking the remainder of the £340m balance.
The £265m takeover deal will now be completed on June 8th, with the extra cash raised helping to cover Mouchel’s debt and integration costs.
The Mouchel deal will create a new enlarged group with a combined order book of £9.3 billion, comprising Kier’s order book of £6.5bn and Mouchel’s order book of £2.8bn.
Kier expects to deliver £10m in annual cost savings, including £4.4m a year in corporate savings from reducing Mouchel’s board.
On completion of the transaction, Haydn Mursell will become CEO of the expanded group.