Ladbrokes, Britain's biggest bookmaker, said today it planned to raise £275 million through a rights issue priced at a discount of nearly 50 per cent to its closing price yesterday.
Ladbrokes also said it would not pay a final dividend in 2009 as it looks to improve its financial position against the backdrop of a weak economic environment and pressure on margins following a run of unfavourable football results.
Shareholders will be entitled to purchase 1 new share for each 2 they already own at a price of 95 pence per share, the company said.
Ladbrokes said its net debt will fall to £687 million pounds from £962 million following the share placing.
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Shares in Ladbrokes closed at 181 pence yesterday, valuing the business at £1.1 billion.
Reuters