LONDON (ShareCast) - Investors expressed relief that property asset manager Capital and Regional has secured backing for its rescue plan for its troubled fund, The Mall Unit Trust.

The company plans to raise £286m to pay off the trust’s existing banking facility in full, by way of an open offer at 101p per unit.

The offer price represents a 45% discount to the April unit price.

The open offer has been backed by Norwich Union Life and Pensions and CGNU Life Assurance, thus ensuring the company will receive the cash, regardless of the response to the open offer.

The transaction, which is expected to complete by the end of June, will provide The Mall with a more resilient capital structure for the future.

Capital & Regional said it remains committed to the Mall and its franchise but did not rule out the possibility of not subscribing in full to the offer.

If the company chooses not to participate in full “the new equity in the Mall will have a beneficial impact on Capital & Regional's financial resilience, but at a potential cost of up to 60 pence per share due to the effect of dilution,” the company said.

Supply chain solutions company Wincanton continues yesterday's slide following its announcement of an acquisition of a UK-based logistics company.

Wincanton is paying £27m for Product Support Holdings Limited (PSHL), with up to a further £3m payable depending on PHSL’s financial performance.

In the year to end-March 2008 PHSL reported pro-forma turnover of £19.4m and earnings before interest, tax, depreciation and amortisation of around £3.6m.

PHSL’s net assets at the end of March were valued at about £3.1m.

PHSL operates from 25 support centres, most of which are based in the UK, and employs 422 people.

Customers include AgustaWestland, BAE Systems and Honeywell.

PHSL’s core expertise is in the management of time-critical spare parts and components.

Wincanton will be looking to parlay this expertise into other areas and build on PHSL’s recent success in winning new contracts in the petroleum industry.

FTSE 250 - Risers
PartyGaming (PRTY) 295.00p +13.35%
Tullett Prebon (TLPR) 477.75p +6.46%
Moneysupermarket.com (MONY) 137.25p +5.58%
Capital & Regional (CAL) 301.25p +4.60%
Kesa Electricals (KESA) 206.75p +4.03%
SIG (SHI) 730.50p +3.91%
VT Group (VTG) 655.50p +3.55%
888 Holdings (888) 147.00p +3.52%
Galiform (GFRM) 59.00p +3.51%
ARM Holdings (ARM) 104.75p +3.46%

FTSE 250 - Fallers
Mondi (MNDI) 362.50p -7.17%
Euromoney Institutional Investor (ERM) 373.00p -7.04%
Ashmore Group (ASHM) 261.25p -4.65%
Close Brothers Group (CBG) 579.00p -4.46%
Great Portland Estates (GPOR) 381.25p -3.66%
Aquarius Platinum (AQP) 831.00p -3.60%
Bovis Homes Group (BVS) 414.00p -3.50%
BSS Group (BTSM) 373.75p -3.30%
CSR (CSR) 315.75p -3.29%
Wincanton (WIN) 297.00p -3.18%

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