HgCapital Plans To Issue New Shares

LONDON (Reuters) – Private equity firm HgCapital Trust plc (HGT.L) plans to raise 30 million to 50 million pounds ($47-$79 million) by issuing new shares next month to fund investments, people familiar with the matter said.

The firm, with a market value of 210 million pounds, on Wednesday announced that it is considering selling new shares by means of a placing and open offer.

Shares of HgCapital, which specialises in European mid-market investments, traded 1.8 percent higher at 825 pence each after the announcement.

The company also proposed a bonus issue of subscription shares to existing shareholders and an interim dividend of 25 pence, accelerating dividend payments to shareholders.

HgCapital, which is debt-free, has committed 280 million pounds to HgCapital 6 and is in discussions to make a commitment to Hg Renewable Power Partners 2 LP.

RBS Hoare Govett (RBS.L) is handling the share sale. ($1=.6344 Pound) (Reporting by Daisy Ku; editing by Simon Jessop)