Bankers cash in on DSG's £310m raiser

Bankers have pocketed just over £9 million in fees for arranging a £310 million fundraising exercise for troubled electricals retailer DSG International.

The company behind Currys and PC World raised the cash today in two separate deals.

It is raising £100 million from the issue of 333.3 million new shares at 30p in a placing to new investors and £210 million from a rights issue at 14p each to the existing shareholder base.

The DSG move is merely the latest fundraiser from an embattled outfit, a trend that has earned the City around £800 million in the past few months for overseeing and underwriting the deals.

Rothschild, Citigroup and JPMorgan Cazenove will share the spoils from the DSG pot.

Advisers declined to say what the fees are, saying they would be available when the prospectus is published. The fees for recent share placings have been between 3% and 8% of the amount raised, high by historical standards.

The stock soared 5p to 42½p as investors took heart that DSG's future has been secured. DSG has renegotiated £400 million of debt.