Videndum raises £125m via placing and open offer

Software firm Videndum has raised £125.0m via the placing and open offer of 46.9m shares at 267.0p each.

Videndum said on Monday that it intends to raise £75.0m via a firm placing of 28.1m shares, and a further £50.0m via an open offer of 18.7m shares. The placing price represented a very modest 3.3% discount to their current price.

The UK-based group will then use £44.2m in net proceeds to fund the repayment and cancellation of its outstanding term loans, which relate to its acquisitions of Savage and Audix, with a further £72.5m to be used to repay drawings under its £200.0m revolving credit facility.

Videndum stated the fundraiser was subject to shareholder approval but noted that it has already received an irrevocable undertaking from Alantra that confirms its intention to vote in favour of the resolution for the capital raise with over 21% of existing shares.

Additionally, Aberforth Partners, which holds 9.5% of existing shares, confirmed its intention to vote in favour.

As of 1020 GMT, Videndum shares were up 21.23% at 334.60p.

Reporting by Iain Gilbert at Sharecast.com