Eurotunnel launches rights issue

Eurotunnel has launched a €915.4 million (£719.6 million) rights issue in the second part of its plan to restructure the business.

The shares will be available at €8.75 (£6.88) per share, a discount of 28 per cent on the price of 25th April 2008.

Shareholders who keep the new shares until 6th March 2011 will also receive one additional new share for free at that time for every 22 new shares bought as part of the offer.

The shares are underwritten by a group of lenders including ABN Amro, HSBC, Lazard-Natixis, Lehman Brothers and UBS Investment.

Jacques Gounon, chairman of Groupe Eurotunnel (GET), said: "On the strength of our good 2007 results, confirmed in the first quarter and by the success of our first capital raising in February, GET is launching the second phase of its capital increase.

"Fully underwritten by a very high quality banking syndicate, it will enable us to raise €915.4 million not only to redeem the remaining NRS II in issue and thereby make further savings on financial charges but also to give us further room for manoeuvre to control our future."

Eurotunnel recorded its first profit of €1 million (£786,000) since opening in 1997 last year, following a financial restructuring and increased passenger numbers. The new station at London St Pancras and a faster link to the continent has helped boost sales.