Cookson tapping City for £277.5m

12 April 2012

AILING industrial group Cookson is to tap investors for £277.5m, selling cut-price shares in a drive to slash its bank borrowings. Recession has hit all three of Cookson's businesses - electronics, ceramics and precious metals - raising concerns about its ability to pay debts racked up through acquisitions in the late 1990s.

Shareholders will be offered eight new shares for every five they hold at 25p each, compared with the 49 1/2p closing price on Thursday. The shares fell nearly a third in opening trade to 33 1/2p.

The group said it was reviewing options including disposals and joint ventures. Cookson also revealed a £44.5m first-half loss, after one-offs, from a £12.3m profit last time and axed its first-half dividend. It paid out 4.5p a share last time. Before one-offs and goodwill it lost £11.9m for the six months ended June, from a near £30.9m profit before tax last time. Operating profits and turnover had shown an improving trend in the first half, Cookson added.

Chief executive Stephen Howard said: 'Although affected by the exceptional turmoil that has swept through our principal markets since early 2001, our businesses are now well positioned to benefit from a sustained recovery in the group's major markets when it occurs.'

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