March 2, 2017 / 7:17 AM / 10 months ago

Cobham to raise 500 mln stg from investors to shore up balance sheet

LONDON, March 2 (Reuters) - British engineer Cobham said it would raise 500 million pounds ($614 million) in a rights issue to put the company on a stronger footing after a “deeply disappointing” performance in 2016.

The company, which two weeks ago issued its fifth profit warning in 15 months, has suspended its dividend and taken charges of more than 800 million pounds.

“Given the reality of Cobham’s current financial performance and our high leverage coming into the year, we have announced actions today to strengthen the balance sheet,” Chief Executive David Lockwood said on Thursday.

“This is needed to reassure our customers, to give us the flexibility to drive operational improvements and to provide us with a sustainable platform for the future.” ($1 = 0.8150 pounds) (Reporting by Paul Sandle; editing by Kate Holton)

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