May 25, 2018 / 6:47 AM / in 5 months

Capita raises 681 million pounds to pay down debt

(Reuters) - Britain’s Capita Plc (CPI.L) said on Friday it raised 681.4 million pounds through a rights issue aimed at paying down debt, plugging a pension deficit and boosting investment.

FILE PHOTO: An illuminated sign is seen in Capita offices in London, Britain, January 31, 2018. REUTERS/Toby Melville/File Photo

Capita, which handles services for companies and governments, said its 3-for-2 rights issue of 1 billion new shares at a 70 pence per share closed on May 24 with valid acceptances of 973.5 million shares, or 97.25 per cent.

The new shares are expected to begin trading on the London Stock Exchange’s main market on May 25.

The company initially planned to raise 700 million pounds from investors to stop the rot at an outsourcing company that Chief Executive Jon Lewis said had failed to adequately control costs, had grown unwieldy through acquisitions and had too much debt.

Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Adrian Croft

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