UTV unveils rights issue move

The owner of talkSPORT today announced plans to raise almost £50m (€63.3m) as it became the latest firm to ask shareholders for a cash boost.

Broadcasting group UTV, which runs 24 radio stations and an ITV franchise, said the discounted rights issue formed part of a wider refinancing aimed at reducing debt and strengthening its balance sheet.

UTV said it remained confident in its long-term prospects, but added it was mindful of the need to balance risk with prudence in the current climate.

As a result, it has already put in place new five year financing facilities and will ask shareholders to participate in a 130p a share rights issue, representing a 39% discount on the share price yesterday.

The underwritten offer will raise £49.9m (€63.1m) and involve two new shares for every three held.

It is the latest rights issue to hit the market following cash calls from Imperial Tobacco and a number of banking groups.

UTV originally intended to start the refinancing this summer, but accelerated the process given the “prevailing and potentially worsening financial market conditions”.

Chief executive John McCann said: “I am pleased that we are able to maintain our cautiously optimistic outlook for this year and have completed the refinancing of the group in the context of very challenging credit markets.”