To a shareholder in Kier, the construction and contracting group’s bumper rights issue must feel like a case of robbing Peter to pay Paul. With the exception of the £14 million in fees being pocketed by the banks underwriting the £264 million cash-call, the proceeds of this fundraising are being used to pay off debts and rejuvenate the company’s balance sheet.
In truth, Kier has little choice, having become a hostage to the changing sentiment of its group of bank lenders and a far more financially cautious government, both of which are directly attributable to the collapse of Carillion in January.
So while it might stick in the craw being asked to put your hand into your pocket to pay off edgy creditors, that