Newspaper article The Evening Standard (London, England)

Corus Plans Share Offer to Raise [Pounds Sterling]300m for UK Revamp

Newspaper article The Evening Standard (London, England)

Corus Plans Share Offer to Raise [Pounds Sterling]300m for UK Revamp

Article excerpt

Byline: STEVE HAWKES

STRUGGLING steelmaker Corus took a major step forward in its restructuring drive today by revealing plans to raise [pounds sterling]307 million through a bumper share sale.

Chief executive Philippe Varin said the cash would fund the second phase of a revamp, which will see 1150 UK jobs go as the group looks to boost efficiency and return to profit.

The former British Steel is putting more than one billion shares on the market in a fivefor-12 placing and open offer at 231/2p, a 9.6% discount to last night's closing price. Lazard and Cazenove are joint underwriters.

Varin revealed: "We said at the interim results we were looking at all options to fund our restructuring plans and this was the only solution that could allow us to kick them off quickly.

"We can now move from survival mode to improvement mode." Corus's shares, as low as 4p in March this year, today soared 25%, or 61/2p, to 321/2p.

The company has lost more than [pounds sterling]2 billion and shed more than 10,000 UK jobs since it was formed in 1999 through the merger of British Steel and Dutch rival Hoogovens. …

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