Pernod Ricard announces £900m rights issue

Pernod Ricard has announced plans for a €1bn (£900m) rights issue to help pay down some of its debt.

The drinks giant today also revealed it was selling its Wild Turkey bourbon brand for US$575m (£390m) to Gruppo Campari.

In a statement Pernod said proceeds from the rights issue and its disposal programme - of which the Wild Turkey sale formed a part - "will allow the group to strengthen its balance sheet and address the major part of its refinancing needs until July 2013".

Pernod said it had had indications from key shareholders including Groupe Bruxelles Lambert that they would be taking up their share of the rights issue.

The group said it would be launching the issue as soon as possible "subject to both market conditions" and agreement on final terms of the deal by its directors.

Pernod meanwhile warned that organic sales growth in the third quarter of the current financial year will have declined by 13 per cent, blaming a rise in excise duty among other factors for the negative trend.