IT services firmLogicaexpects to raise about £85m via a share issue designed to
reduce its debt. It is also more than halving its share dividend
for the year to save cash.
Logica announced last month that it was intending to slash its
operating costs in a programme that includes
job losses among contractors.
Logica expects a 4% increase in sales for 2008, and is working
to deliver "modest revenue growth" next year.
Under the terms of the share issue, Logica intends to place 122
million new ordinary shares of 10p each on the market. This
represents 8.3% of the current issued ordinary share capital.
Logica's major shareholders, including Schroders and Aviva
Investors, have already said they will take a "significant" portion
of the new shares, said Logica.
To cut costs further, Logica is more than halving its full-year
dividend for the year to 3p per share, down from 5.8p in 2007.
The firm says the dividend for 2009 will also be in the region
of 3p.
"The proceeds from the share placing and dividend reduction will
be used to reduce debt, providing Logica with additional
flexibility should debt markets remain difficult," said Logica.