Punch ducks blow by shareholders
Embattled pub group Punch Taverns saw its £375 million investor cash call scrape through after nearly 40 million votes were lodged against the move.
Punch, which is raising the money to help meet repayments on a £4.4 billion debt mountain, received 75.1% of votes in favour of its share placing - just nudging past the 75% required.
It is thought that two hedge fund investors were among those that opted not to back the fundraising in protest at the dilution effect on shares and the strategy to use the share placing to reduce debts.
Punch plans to use the proceeds to repay debts after warning on announcing the fundraising last month that it may otherwise be unable to meet some repayments falling due.
The group has been whittling down its debts, paying off £404 million - 8% of the total - since the start of its financial year.
It has sold off non-core pubs to help pay-down debts, recently announcing the sale of 11 pubs to rival Greene King for £30.4 million.
It has also said it will continue to look at asset sales and ways to cut costs to improve cash flow and ease its debt burden, but it hopes the share placing will avoid the need to offload core pubs at unattractive prices.
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