Eidos confirms rights issue
Good time to raise capital?
Eidos today confirmed that it is in the "late stages of arranging an equity issue for cash at a deep discount to the share price prevailing at the close
of business on 25 May 2001".
The games publisher issued the statement to the London Stock Exchange, following a leak of the plans in The Sunday Times.
According to the paper, Eidos is gunning for a £50m rights issue, which is "likely to be priced at almost half the current share price of 300p".
Eidos reckons that this is a good time to raise fresh equity, "in view of the strong growth prospects to which the Directors believe the entertainment software market can look forward over the next few years".
The company says it will release more information, when appropriate.
In common with many games software houses, Eidos has seen expected sales growth fail to materialise - as consumers hold fire for the (delayed) next generation of games consoles to hit the streets. Eidos has made a few missteps of its own - with delays in product launches hitting the bottom line. ®