Shares in UTV Media fell the most in 17 years in London trading today at it announced plans to raise £49.9 million pounds (€63.09 million) through a share sale.
UTV dropped as much as 12 per cent, the most since June 1991. Shareholders are being offered two shares for every three held at 130 pence per share, a 39 per cent discount to UTV's closing price yesterday.
The proceeds "will be used to reduce the overall gearing, strengthen the balance sheet," and support the company's development of a diversified multimedia business, UTV said in an e-mailed statement.
The Belfast-based company, which shows the programs of broadcaster ITV Plc in Northern Ireland, said trading "continues in line" with its update last month and it is "cautiously optimistic" for the full year.
UTV's revenue rose 7 per cent in the first four months of the year, boosted by acquisitions, it said May 16th.
UTV fell as much as 24.5 pence to 188.5 pence and traded at that price as of 11.48am, giving the company a market value of £103.3 million.
Bloomberg