Informa launches rights issue following US takeover deal approval

William Turvill
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Inside The London Stock Exchange
Informa's rights issue is being used to fund its £1.2bn takeover of Penton Information Service (Source: Getty)

Informa’s share price was lowered by eight per cent this morning as part of a rights issue.

Informa’s issuance comes shortly after the company received shareholder approval for the acquisition of US business Penton Information Services for £1.2bn.

11 October 2016 @ 9:00amInforma (INF)

Read more: British information business Informa announces £1.2bn takeover of US rival

After that deal was announced on 15 September, Informa's share price rose from 693p to 731p. Today's lowering is a technical adjustment following the rights issue.

The company announced at the time that the deal would be largely funded by a fully underwritten £715m rights issue.

Read more: The FTSE 100 is flirting with its all-time high

The company said this morning:

Pursuant to the related rights issue announced on 15 September 2016, 162,234,656 rights issue shares of 0.1 pence each will be admitted, nil paid, to listing on the premium listing segment of the official list of the UK listing authority and will be admitted, nil paid, to trading on the London Stock Exchange's main market for listed securities at 8am today.

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