Thomas Cook investors back rights issue

Thomas Cook investors back rights issue

Thomas Cook investors have backed plans to raise £400 million through a rights issue, according to reports.

Sky News reports that an announcement is expected tomorrow on plans to secure the company’s long-term future through a placing and rights issue.

The widely anticipated move will raise a sum in the region of a third of Cook’s market capitalisation as of Wednesday evening.

Quoting information from insiders, Sky said the operator was also planning to announce new long-term borrowing facilities and reveal sharply improved performance in its half-year results later this month.

The plans for the rights issue are believed to have been approved as part of a restructuring planned by chief executive Harriet Green.

Her plans are believed to include the disposal of a number of brands including ski operator Nielson.

Cook has already announced it plans to shed around 2,500 jobs and close nearly 200 stores as part of its turnaround strategy.

Travel Weekly was unable to reach Thomas Cook for comment.

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