TURNER AND NEWALL SEEKS 71.7 MLN STG IN RIGHTS
Turner and Newall Plc said it planned to
raise a net 71.7 mln stg with a one-for-six rights issue of
36.15 mln shares.
    The shares would be offered at 205p, compared with Turner's
price which fell to 227p from last night's close at 241p.
    The group said the funds would be used to cut borrowings,
which had risen to 234 mln stg at end-February, largely as a
result of the takeover of <AE Plc>.
    The company also reported pretax profits rising to 44.7 mln
stg from 39.6 mln previously.
    It noted that the purchase of AE involved the payment of
some 125 mln stg cash as well as taking on AE's own borrowings
of some 85 mln stg. The net debt/equity ratio at the year end
had risen to 59 pct from 23 pct the year before, it added. The
rights issue would cut borrowings and also allow further
development through investment and acquisition.
    But it said that the purchase of AE -- which was won after
a long and acrimonious battle last year -- greatly strengthened
the group's position in the automotive components and
engineering materials sectors.
    In the 15 months to end-1986 AE produced pretax profits of
27.4 mln stg compared with 25.6 mln in the 12 months
previously.
   As the offer for AE was not declared unconditional until
December 5, it made a negligible contribution to Turner's 1986
results.
    Turner said the prospects were good and it looked forward
to taking advantage of the opportunities available.
   1986 operating profits were higher in all areas apart from
Zimbabwe mines, which were hit by the strength of the local
currency against the dollar.
 REUTER
