KappAhl too needs more money

Fashion chain KappAhl’s (STO: KAHL) President & CEO Johan Åberg claims the company is on the right track, doing the right things and that the company’s 2011/2012 fiscal year the details of which were reported this morning includes many bright spots. What truly sunk the stock today is an announcement of an upcoming 375 million share issue proposal with preferential rights to existing shareholders. This combined with a near 500 million property sales that have been contracted for would allow the firm to reduce interest bearing debt by two thirds and reach its Net Debt/Ebitda target of below 3.0.