Plans ditched as a result of market uncertainty
Following extensive discussions with shareholders and potential new investors regarding a possible equity raise of between £1bn and £1.5bn, intu has announced it is unable to proceed with an equity raise at this moment in time.
According to the official announcement, a number of intu’s shareholders and potential new investors indicated their support for an equity raise, but the board believes the current uncertainty in the equity markets and retail property investment markets prevented a number of potential investors from committing funds into the business, meaning intu was unable to reach the target amount.
Matthew Roberts, chief executive of intu commented: “We remain focused on fixing our balance sheet in the near term to ensure this business has the financial footing it needs to realise its significant potential. While it is disappointing that the extreme market conditions have prevented us from moving forward with our planned equity raise, I am pleased that a number of alternative options have presented themselves during the process which we will now explore further.
“We will face further challenges in what has been an extraordinary few months for intu and the wider sector, but I am confident that we will face these head on and emerge a leaner, fitter and more focused business.”