Kier Group - RESULTS OF RIGHTS ISSUE

[idpickering]

Kier Group plc announces that the 33 for 50 rights issue of 64,455,707 New Shares at 409 pence per New Share announced on 30 November 2018 (the "Rights Issue") closed for acceptances at 11:00 a.m. (London time) on 19 December 2018. The Company received valid acceptances in respect of 24,276,286 New Shares, representing approximately 37.66 per cent. of the total number of New Shares to be issued pursuant to the fully underwritten Rights Issue.

It is expected that the New Shares in uncertificated form will be credited to CREST accounts as soon as practicable after 8.00 a.m. on 20 December 2018 and that definitive share certificates in respect of New Shares in certificated form will be dispatched to Shareholders by no later than 3 January 2019.

It is expected that the New Shares will commence trading, fully paid, on the London Stock Exchange plc's main market for listed securities on 20 December 2018.

Kier will receive the £250m net cash proceeds of the Rights Issue by 28 December 2018.

https://www.investegate.co.uk/kier-grou ... 00050489L/

[Dod101]

I hold no Kier but that is hardly a ringing vote of enthusiasm for throwing money at Kier. The underwriters will be left to fund the remaining 62.34% (nearly 2/3rds!) and that in turn will presumably cause an overhang on the share price as they try to offload these onto the market. It rather confirms my view that this is a very nervous market.

Dod

[Wizard]

And the reward for those that took the rights? Share price down nearly 10%.

Terry.

[teecee90]

I’m surprised anybody took up the rights given the market price was below the rights price pretty much the whole of the offer period. I topped up at £3.95

[monabri]

It would make no sense to partake in the RI as one could buy shares at a discount on the open market at lower than 409p.

Goldman Sachs dumping a lot of their holding the other day didn't help nor did the slight tweak ( increase) in shorting ..probably on weak volumes to further depress the sp.

Kier might (might) come good for the brave but not one for a brave HYPer.

[Dod101]

I was not following Kier and I had forgotten the price dip so it is not surprising as you have all said that the rights issue did not do very well so not much to be read into that.

Dod

[teecee90]

KIER currently represents 1.3% of my portfolio by value and 3% by cost with an average cost per share of 989.68. Could be a long while before I see a return on the capital value but I’m more interested to see what happens to the dividend.

[monabri]

I've penned in a 50% reduction in dividends next year based on the extra shares arising from the RI and a bit more for pessimism.

Mr Mursell will probably have pencilled in a bonus increase of 50%...

[monabri]

Little chance of a recovery anytime soon..?

https://www.londonstockexchange.com/exc ... 84100.html


"Peel Hunt LLP said Thursday its fellow bookrunners will sell up to 28.1 million shares in the construction firm following Kier Group PLC's rights issue earlier Thursday. The shares will be sold at a price between 360 pence to 375 pence each, compared to the 409p price of the rights issue. "

[Dod101]

Why would they specify an upper price? To guarantee their loss?

Dod

[monabri]

Seemingly, the directors /PDMRs took up the RI to some extent. (CEO, CFO & COO took up ~50% of their RI entitlements)

https://otp.tools.investis.com/clients/ ... id=1218805

[Lootman]

Seemingly, the directors /PDMRs took up the RI to some extent.

https://otp.tools.investis.com/clients/ ... id=1218805

I suppose that they might have felt obligated to do that. Asking the investing public to put up more cash when the insiders do not want to smacks of a lack of belief in the enterprise.

This entire "Support Services" sector has been a disaster. The name is meaningless anyway. If I were in charge of the brand and I would dismantle the sector and allocate its constituents to other sectors.

What's the yield on Kier now? 15%? I'd expect the dividend to be abolished, else they will be accused of running a right issue to fund an uncovered dividend. What a mess.

[Wizard]

Seemingly, the directors /PDMRs took up the RI to some extent.

https://otp.tools.investis.com/clients/ ... id=1218805

I suppose that they might have felt obligated to do that. Asking the investing public to put up more cash when the insiders do not want to smacks of a lack of belief in the enterprise.

This entire "Support Services" sector has been a disaster. The name is meaningless anyway. If I were in charge of the brand and I would dismantle the sector and allocate its constituents to other sectors.

What's the yield on Kier now? 15%? I'd expect the dividend to be abolished, else they will be accused of running a right issue to fund an uncovered dividend. What a mess.

Agree, any assumption of a dividend of more than zero is a bit optimistic IMHO.

Terry.

[Davidsb]

,,,not one for a brave HYPer...

I allowed my rights to lapse, and I just bought the equivalent number of shares in the market this afternoon.

Well, I always was an optimist.....

;¬)

[Arborbridge]

I hold no Kier but that is hardly a ringing vote of enthusiasm for throwing money at Kier. The underwriters will be left to fund the remaining 62.34% (nearly 2/3rds!) and that in turn will presumably cause an overhang on the share price as they try to offload these onto the market. It rather confirms my view that this is a very nervous market.

Dod

Well, we (Mrs Arb's account, this one) had a narrow escape there, having sold a year ago. We got out at a small profit, but not a good investment for the many years we have owned the shares. At least I did not have a huge loss to explain to Mrs Arb!

Shares finished up today (according to HL), despite a bad start this morning. Good luck to those who held.

Arb.

[melonfool]

Funny, I warned about Kier years ago on TMF, I was shouted down, told it was a sterling share and that everyone held it and were very happy with it.

Anyway, I knew people who worked there and didn't feel happy with the tales they told. Gone now, of course, scalps in the cost cutting....

Mel

[monabri]

New contracts

(1) "Kier has been appointed by The Pirbright Institute to deliver a new £50m research facility at its Surrey headquarters in a project which forms part of Pirbright’s wider redevelopment of its campus"

https://www.pbctoday.co.uk/news/plannin ... ity/50232/

(2) "Kier has confirmed it has secured the job to build part of Facebook’s headquarters in the London King’s Cross development."

http://www.constructionenquirer.com/201 ... e-complex/

Let's hope they can be delivered with a good margin...

[teecee90]

Some people on here are talking as if Kier is dead and buried already. As far as I'm concerned rumours of their demise have been highly exaggerated. None of us has a crystal ball to predict the future prospects for the share price or dividend with any certainty and portfolio diversity remains the answer to that uncertainty in my view.

[Dod101]

New contracts

(1) "Kier has been appointed by The Pirbright Institute to deliver a new £50m research facility at its Surrey headquarters in a project which forms part of Pirbright’s wider redevelopment of its campus"

https://www.pbctoday.co.uk/news/plannin ... ity/50232/

(2) "Kier has confirmed it has secured the job to build part of Facebook’s headquarters in the London King’s Cross development."

http://www.constructionenquirer.com/201 ... e-complex/

Let's hope they can be delivered with a good margin...

This sort of report was delivered about Carillion until not that long before their demise.

Dod

[monabri]

New contracts

(1) "Kier has been appointed by The Pirbright Institute to deliver a new £50m research facility at its Surrey headquarters in a project which forms part of Pirbright’s wider redevelopment of its campus"

https://www.pbctoday.co.uk/news/plannin ... ity/50232/

(2) "Kier has confirmed it has secured the job to build part of Facebook’s headquarters in the London King’s Cross development."

http://www.constructionenquirer.com/201 ... e-complex/

Let's hope they can be delivered with a good margin...

This sort of report was delivered about Carillion until not that long before their demise.

Dod

Debtwise, Kier are not in the same position as Carillion.

The pension deficit was reported (April 17 - JLT Employee benefits report - link below) was £88m (95% funded - assets v liabilities).

So, I feel they have a fighting chance.


https://www.jltemployeebenefits.com/our ... isclosures

(With its sister report on FTSE100 companies it is a well worthwhile read)