Embassy to raise pounds 15m by cash call

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The Independent Online
EMBASSY PROPERTY plans to raise pounds 15m after expenses from a new share issue. It has also acquired Skillion, a manager of commercial centres, from TR Property Investment Trust for pounds 8.72m, and 25 per cent of a Peking development for pounds 3m, writes Diane Coyle.

Richard Yerbury, managing director, said the moves would allow the company to pay off debt, fund the acquisitions and add to working capital. Skillion would improve cash flow, while the Chinese deal brought better growth prospects.

Existing 5p Embassy shares will be divided into 1p ordinary shares and in effect valueless non-voting 4p shares. The reorganisation has the backing of leading shareholders. These include the Wong brothers, who invested pounds 4.5m in Embassy when it was restructured in 1992.

Embassy made losses of pounds 454,000 before tax in the six months to September. Dealings in the new ordinary shares are expected to begin on 31 March.