Leighton Holdings Ltd (ASX:LEI) has launched a $757 million capital raising after slashing its full year guidance by more than $900 million.
The construction group now expects to book a loss of $427 million in the 2011 financial year, considerably below its last full-year forecast of a $480 million profit.
Leighton says the revision is primarily due to write-backs on its troubled Airport Link project in Queensland and the Victorian Desalination Project, and, an impairment of Leighton’s investment in the Habtoor Leighton Group.
The $757 million capital raising includes a fully underwritten entitlement offer of $22.50 per share with Leighton’s largest shareholder, Hochtief, committing to take up its full entitlement under the offer.
Leighton says it expects to return to profitability in the 2012 financial year with a profit forecast of between $600 to $650 million.
In the six months to 31 December 2010, Leighton Holdings generated a net profit of $218 million.
