By Ian Walker

Compass Group PLC said Tuesday that it is seeking to raise 2 billion pounds ($2.42 billion) via an equity issue to strengthen its balance sheet and liquidity position during the coronavirus pandemic.

The U.K. catering contractor said that the money will be raised via a share placing under a bookbuild program, subscription and retail offer. The number of shares to be issued and the price will be announced once books close.

It said directors and members of the senior management team have agreed to subscribe for up to GBP1.1 million of new ordinary shares, the company said.

Last month Compass said it won't recommend an interim or final dividend for fiscal 2020, and that its chief executive has temporarily reduced his salary by 30%, both due to the coronavirus pandemic.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

May 19, 2020 02:37 ET (06:37 GMT)

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