SIG to consider selling shares to help it meet loan repayments

THE OWNER of Irish Insulation Systems, Capco Roofing and other building product supply firms is reported to be considering selling shares to help it meet loan repayments.

London-listed building materials group SIG, which has more than 10 Irish subsidiaries, said yesterday that it was looking at a “range of options”, including equity raising.

SIG issued the statement in response to reports that it is considering issuing new equities to help it raise money to ensure that it does not break loan agreements with its banks.

The statement did not confirm that this was the reason it is considering issuing new shares to raise cash.

The company said it would make a further statement “as and when appropriate”.

It reported last year that its debts had reached £640 million by the end of June. It is due to publish full-year results today.

SIG used borrowings to fund much of a £680 million acquisitions drive from mid-2004 through to July last year. Analysts have recently warned about its debt levels. Many companies in its sector expanded rapidly by acquisition over the last five years, largely using borrowed cash.

Ireland and Britain generate more than half SIG’s sales, which are focused on building products such as insulation, roofing and safety equipment.

The collapse in building industries in both countries has hit earnings and the value of the assets it bought. Irish subsidiaries include Tenon Ireland, Facades Systems, Insulation Distributors and Capco.