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Imtech Launches 500 Million Euro Rights Offer to Cut Debt

By MarEx 2013-07-04 07:59:00

Dutch engineering firm Imtech launched a 500 million euros ($649 million) rights offering on Thursday to reduce its debt level and spur a recovery after uncovering fraud at its German and Polish operations.

The rights offering of 356,597,988 new ordinary shares at an issue price of 1.40 euro per share is fully underwritten by ING, Rabobank and Commerzbank.

Imtech said the price represents a discount of about 37.3 percent to the theoretical ex-rights price.

Imtech shares initially fell more than 3 percent, but quickly swung to a 5 percent gain.

Imtech shocked investors in February when it announced financial irregularities at its Polish and German operations, and has since taken charges totalling 370 million euros. It has also announced 1,300 job cuts.

Reporting by Sara Webb (C) Reuters 2013.