WYG has completed a capital structuring that, if voted through by shareholders, will see the firm’s shares almost entirely owned by institutional investors
Existing shareholders will have their stake diluted down to just 1.09% of the firm.
The move will raise £30M and see the firms outstanding £51M debt converted into shares owned by lenders.
Existing shareholders are expected to agree the deal at the firm’s annual general meeting.
Chairman Mike McTighe said: “Much has been achieved over the past two years to recreate a stable operational platform.
“Today’s proposals will provide WYG with significant positive cash balances, a strengthened balance sheet and the ability to incentivise its employees, so creating a significantly stronger position from which to take advantage of the growth opportunities that now exist for the Group.
“The Board is grateful for the support of all of its stakeholders over the past two years, and in particular for the support of its Lenders, which has enabled the Group to reach this significant milestone in the Group’s development.”
The restructuring will see the the placing of 64,000,000 new ordinary shares at a price of 50p with new institutional investors and the conversion of £51M of the Group’s net debt into 4,540,758 convertible shares, also owned by the new investors. The firm will remain listed on the alternative investment market.
Chief executive Paul Hamer stressed that the existing management remained in control of the company.
“The new shareholders will end up owning the majority of the companu, but the business is not controlled by the banks,” he said. “They are our key stakeholders.”
Hamer added that the move would make a big difference to the firm’s ability to compete and win work.
“Everybody knows how tight the UK public sector is. The current balance sheet makes it very difficult to win work in that sector,” he said.
Hamer said the stated ambition of the firm was still to generate 50% of its revenues from outside the UK. The firm has international bases in Warsaw, Moscow, Ankara, Abu Dhabi and Shanghai and Hamer said he was keen to export the firm’s expertise in environment, waste, power and water.