Symphony Intl calls for more firepower

Symphony International, which invests in consumer-related businesses, primarily in the healthcare, hospitality, and lifestyle sectors, is replenishing its war-chest through a rights issue.

The group is planning to raise around $100m through a fully underwritten rights issue on the basis of 0.481 new shares at 60 cents per share for every one share currently held.

The issue price represents a 6.94% discount to the theoretical ex-rights price of 64.473 cents per new ordinary share, based on the closing price of 66.625 cents on October 3rd, the day before the rights issue announcement. The theoretical ex-rights price represents the effect on the share price caused by the fact that the company now has more shares in issue while its stock market value remains unchanged.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

If the demand is there, Symphony said the size of the issue may be increased.

The firm's Investment Manager is currently exploring 15 potential investments in the healthcare, hospitality, and lifestyle sectors with an aggregate investment value of up to $1.28bn, or thereabouts, hence the need for more funds. The Investment Manager believes that the investment opportunities should be able to generate attractive returns for the company.

Shares in Symphony eased by a cent to 66 cents in morning trading.

JH