Investors in property investment firm Redefine have showed their displeasure at the company's plan to launch heavily discounted new shares.
The firm said it would raise £127m through the issue of over 490m new shares to pay down debt and create investment opportunities.
The issue price of 26p represents a discount of 7.5p - over 22% - to the closing price of 33.5p per share on the close of trade on Wednesday, the day before the details were released.
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"The board remains confident of the group's long term growth prospects but, in order to achieve this growth, the group needs to reduce its financial leverage and create a stable long-term capital structure," the statement said.
It added the capital raised was expected to provide a long-term stable capital structure from which a sustainable dividend could be distributed.
This wasn't enough to assuage angry investors who sold up, pushing shares down 9%.
The price move came despite the offer having the support of the company's largest shareholder, Redefine Properties International, which holds approximately 71.7%. of the company's ordinary shares.
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