Costain confirmed yesterday that it was planning a £60m-plus rights issue to ‘take advantage of commercial opportunities’. The Times. Financial Times
It is thought Costain’s two biggest shareholders, Daedalus Projects and Mohammed Abdulmohsin Al-Kharafi & Sons, which control almost 60% of the company, are backing the cash call.
Market sources believe the underwritten new shares, worth almost half the company’s existing market value, will have to be priced at 23p, a sizeable discount to its current price.
Kevin Cammack at Kaupthing said the move could be a sign that the company is struggling to raise capital for Alcaidesa, its Spanish property development joint venture, which at the end of July won planning consent for a marina near Gibraltar.