Mecom Raises £141.5m
Saturday, May 30, 2009 12:38
As the credit crisis has unfolded, the newspaper publisher—Mecom, which was founded by the former Mirror Group chief executive—David Montgomery, has had to sell to reduce its debts.
The company tapped shareholders for £141.5 million. The cash call came three days after Mecom, whose 300 European titles included Berliner Zeitung until its sale in March, admitted that group sales during the first four months of the year were down by 14% on the same period in 2008.
Mecom is issuing six new shares to investors for every one they already own at 1.5p each, a 70% discount to Thursday’s closing price of 5p. the company, which recently reported a full-year pre-tax loss of £944 million for 2008, said that the rights issue would reduce its debts, £669 million at the end of last year, to £336 million. It confirmed that the company had also reached agreement with its banks on amendments to its debt facilities.
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