Devro seeks pounds 31m for Teepak buy

Devro International, the Scottish artificial sausage skin maker, has announced a pounds 31m placing and open offer to back the acquisition of Teepak International, a leading US maker of meat casings. The full $133m cost of Teepak will be met by a cash payment of $46m, $52.3m in preference shares and the remainder in new Devro ordinary shares.

The purchase follows provisional clearance of the purchase given by the US Federal Trade Commission on Tuesday. The one-for-10 placing at 230p a share is being underwritten by Charterhouse Bank.