UPDATE 1-Indebted Dutch engineer Imtech to issue shares, cut jobs

mardi 26 août 2014 10h31
 

* 600 million euro share issue agreed with bank consortium

* To cut a further 750 jobs, mostly in Germany

* ICT division to be sold to Vinci for 255 million euros

* After falling 80 percent this year, shares rise 7 percent (Adds job cuts, shares, details, background)

By Thomas Escritt

AMSTERDAM, Aug 26 (Reuters) - Dutch engineering services group Royal Imtech is cutting 750 jobs, raising 600 million euros ($792 million) in a share sale and selling its information technology arm in a bid to cut hefty debts that have battered its shares.

Imtech, once a darling on the Amsterdam stock exchange, has been hit over the past year by accounting fraud at its German and Polish operations. Losses widened to 224.2 million euros in the second quarter from a 170.9 million loss a year earlier, driven by one-off financial charges, it said on Tuesday.

The 150-year old company said it had agreed a fully underwritten 600 million euro rights issue with a consortium of banks and would be freed from financial tests related to its borrowing agreements until the first quarter of 2016.

Roughly 500 million euros in new capital, the second emergency raising of capital in just over a year, will be used to pay down debt, as will proceeds from the sale of its ICT division to French construction firm Vinci for 255 million euros.   Suite...