WHSmith plans to raise cash through an equity issue as it battles the business impact of the coronavirus outbreak.
WHSmith, which was hit hard by the pandemic’s effect on its travel stores as lockdowns and flight restrictions were introduced by governments across the world, said it was at an ”advanced stage” of preparations for a share placing representing a maximum of 13.7% of its issued share capital.
The retailer revealed its plans following a report in yesterday’s Mail on Sunday.
WHSmith said that it, along with many retailers, “has seen a substantial downturn in economic activity resulting from the Covid-19 pandemic” since it updated in the middle of last month.
It said: ”The duration of the Covid-19-related crisis is uncertain and, as a result, the group has secured new lending facilities of £120m, which will strengthen its balance sheet, working capital and liquidity position.
”The new financing arrangements are conditional on raising new equity. As a result, the group is in an advanced stage of preparation for an equity issue of a maximum of 13.7% of its issued share capital by way of a placing.
”These financing arrangements, coupled with a broad range of mitigating actions to manage the cost base and cash flow, will provide sufficient liquidity to deal with this most challenging of trading environments.”
WHSmith will update on the share placing ”as and when appropriate”.
No comments yet