Troubled defence firm Cobham has raised around £500m in its rights issue

 
Courtney Goldsmith
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F-15C Eagle aircraft armed with AIM-7 Sparrow and AIM-9 Sidewinder missiles...
Cobham has issued numerous profit warnings over the last two years (Source: Getty)

Cobham has raised around £500m in its second deeply discounted rights issue in less than a year.

Investors nabbed 98 per cent of the two for five issue of 683.1m shares, which were priced at 75p per share, or a 59 per cent discount to its closing price yesterday of 138p.

The rights issue will go towards cutting the company's substantial debt.

The troubled aerospace and defence firm's shares were trading 1.01 per cent lower at 136.6p this morning.

Cobham has issued five profit warnings in less than two years as it struggles to grapple with charges on its work with Beoing's struggling KC-46 tanker programme among other writedowns.

It also emerged in March that Cobham was under investigation by the Financial Conduct Authority (FCA) over how it handled information about a previous rights issue.

After profits fell 37 per cent in 2016, Cobham said trading for the first three months of 2017 is in line with expectations. The firm is reviewing its portfolio and expects to provide an update on its interim results on 3 August.

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