Shares in British pub group Marstons were down by 19.07% or 26.75 points to 113.5p this afternoon after it announced plans to raise £176m in rights issue.
Marston's fully underwritten 11-for-10 issue is priced at 59p per new share. The company will spend £140m to accelerate its strategy of acquiring and developing new-build pubs after temporarily slowing the programme in late 2008.
It will use the remainder to buy pubs from rivals or to repay debt, if can buy it back at attractive prices.
"The rights issue will allow us to take advantage of situations arising in the current economic climate and accelerate the roll-out of the new build pubs in attractive locations at attractive investment costs," said Ralph Findlay, the chief executive of Marstons.
