Eurotunnel in 815m euro rights issue
Eurotunnel has said it wants to raise 815 million euros (£718 million) from shareholders in order to help pay its creditors. The operator of train services to continental Europe suspended its shares on Monday ahead of the announcement.
Premier Foods cuts dividend and rejigs debtEurotunnel is currently in debt to the tune of four billion euros. The company said that the rights issue would allow it to make more savings on its financial charges.
Jacques Gounon, chairman of Eurotunnel, said, "On the strength of our good 2007 results, confirmed in the first quarter and by the success of our first capital raising in February, GET is launching the second phase of its capital increase. Fully underwritten by a very high quality banking syndicate, it will enable us to raise 915.4 million not only to redeem the remaining NRS II in issue and thereby make further savings on financial charges but also to give us further room for manoeuvre to control our future."
Gounon said, "Current shareholders of Groupe Eurotunnel have the opportunity to increase their investment on very attractive terms.
"This rights issue will enable Groupe Eurotunnel to control its future as a long-term infrastructure concessionaire with good prospects in terms of profitability and recurrent cash flow."
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