TDS Circuits Plc is seeking UKP1m net of expenses with a placing and open offer to its shareholders. The offer is three-for-10 to ordinary shareholders and two-for-one to holders of the convertibles, at 10 pence a share; the issue, of 10.7m new shares, has already been conditionally placed by Henry Cooke, Lumsden Plc with the company’s controlling shareholder, Zincocelere Srl. The Blackburn company says that as a result of the substantial losses incurred over a number of years, and despite thesubscription of UKP4m in convertible preferred shares in early 1990 by Ing C Olivetti & Co SpA, shareholders’ funds at December 31 had fallen to less than UKP1.6m, and borrowings exceeded UKP3.5m, being wholly owed to or supported by other members of the Olivetti group. It owes $1.34m in dividends on the convertibles and needs to redeem them at the end of next year. The directors have also identified a requirement to make specific investment expenditures in the short term, to increase both capacityand technological capability essential to achievement of further recovery. TDS shares are at 11p.
