Shanks' £66m rights issue to cut down on debt payments

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Shanks claimed that the money would be used to reduce its indebtedness, which last year saw rising interest rate payments help send the group's profits for the year to the end of March down 18% to £33 million.

The company, a leading remover of waste in the capital, said that it is issuing 158 million new shares at a price of 45p - less than half where Shanks shares closed last night at 91p.

The company is paying £4.7 million to the City - mainly to the rights issue's underwriter Royal Bank of Scotland - for the privilege. This works out at a historically high 6.6% proportion of the fund raising.

Tapping investors to participate in a rights issue has meant that the group is scrapping its final dividend.

Last year this was worth 4.2p a share to investors when the group's total dividend payouts topped £15 million.