By Tiisetso Motsoeneng JOHANNESBURG (Reuters) - Anglo-South African investment banking group Investec Plc unveiled an equity placing to allow for the repurchase of debt, sending its shares lower on fears of earnings dilution. The company said on Tuesday the placing of up 22 million new shares and the subsequent repurchase of debt at a discount was expected to improve its tier 1 capital without reducing the total capital adequacy ratio. "This offering gives Investec the flexibility to prudently repurchase debt at a discount to par and subsequently the opportunity to deliver long term shareholder value, while preserving a strong tier 1 capital position," chief executive Stephen Koseff said. Investec shares fell nearly 4 percent on fears the placing could dilute earnings but analysts said overall the move was positive for the company. "The placing would achieve a comfortable buying of its debt at a discount and I think it should be received positively in the market," one analyst said. "There's an element of dilution in shares but overall it's a positive move and the shares should recover later in the day." By 0733 GMT, Investec Plc shares on the Johannesburg exchange were down 3.91 percent at 49.18 rand, compared to a 0.98 percent rise in the JSE Top-40 index of blue chips. Investec Plc said the placing represented 3.07 percent of the combined existing ordinary shares of Investec Plc and Investec Limited, both of which are listed on the Johannesburg bourse. The placing price would be agreed by Investec and Merrill Lynch, which is the acting as sole bookrunner, at the close of the book-building process, the company statement concluded. | 
