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Costain to raise ?100m in placing, UAE construction group to take 15% stake
7th May 2020 12:30
(Sharecast News) - Costain has announced plains to raise around ?100m in a share placing backed by UAE construction group ASGC.
The company plans to raise ?80m through a firm placing and a further ?20m through a placing and open offer. The shares will be issued at 60p each, which is a 20% discount to the closing share price on Wednesday.
ASCG has committed to invest ?25m in return for a 15% stake in the company.
Costain said proceeds from the placing will be used for general corporate purposes, allowing the it to "demonstrate its increased financial capacity to clients" and to "take advantage of business growth opportunities through the investment required in bid costs and innovation and technology".
Proceeds will also provide the financial capacity "to support the requirements of clients and partners for joint operation delivery structures and project bank accounts where appropriate".
Headquartered in Dubai, ASGC is a privately-owned, vertically integrated construction group with a focus on delivering turn-key special projects in the UAE, and more recently Egypt and Africa. It has an annual turnover in excess of $1bn.
The company plans to raise ?80m through a firm placing and a further ?20m through a placing and open offer. The shares will be issued at 60p each, which is a 20% discount to the closing share price on Wednesday.
ASCG has committed to invest ?25m in return for a 15% stake in the company.
Costain said proceeds from the placing will be used for general corporate purposes, allowing the it to "demonstrate its increased financial capacity to clients" and to "take advantage of business growth opportunities through the investment required in bid costs and innovation and technology".
Proceeds will also provide the financial capacity "to support the requirements of clients and partners for joint operation delivery structures and project bank accounts where appropriate".
Headquartered in Dubai, ASGC is a privately-owned, vertically integrated construction group with a focus on delivering turn-key special projects in the UAE, and more recently Egypt and Africa. It has an annual turnover in excess of $1bn.