3i looks at new issue of equity

Private equity investment trust 3i Group has confirmed it is considering a possible issue of new equity as it looks at options for raising finance in the current environment.

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The board issued a statement to the London Stock Exchange following speculation the trust was to announce an issue of new equity to raise £700m.

It said: "The company confirms it is considering a range of financing options, including the potential issue of new equity. Any decisions by the board will be communicated to shareholders as and when appropriate."

The trust is looking at how it might reduce its estimated £2.1bn debt within the next 12 months, and has already announced a raft of changes addressing the structure and running of the company.

In January, chief executive Philip Yea was replaced by Michael Queen, former managing partner at 3i Infrastructure.

The news broke as dealing in the shares of 3i Quote Private Equity - the fund that is to be wound up just two years after launching - was suspended.

The group has already pledged to sell 77m shares, or a 9.5 per cent stake, in 3i Infrastructure.

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