Punch announces £350m shares issue plan

15/06/2009 14:25:13

Punch Taverns has announced plans to raise £350 million through a shares issue and expressed an intention to make a tender offer to buy any or all of its outstanding convertible bonds.

It says it will do so at a purchase price of no less than 95 per cent of the nominal principal amount outstanding.

The firm's interim management statement for the 40 weeks to May 30th said trading results to date reflected the "challenging market conditions being faced by the sector".

It stated: "The wider recessionary economic conditions have significantly reduced consumer confidence and impacted the level of disposable income being made available for leisure activities."

However, Punch said it expected to meet its financial expectations by the end of the year and expressed confidence for the longer term prospects of the group – good news for those employed in hospitality jobs.

Earlier this month, Derby pub manager Janina Holmes, landlord at the Old Silk Mill, told thisisderbyshire.co.uk how she had named a new ale after the peregrine falcons which reside in the cathedral next door.

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