Builders merchant group Travis Perkins is launching a rights issue to raise around £314m, just weeks after rival builders merchants Wolseley competed their £1bn cash call.
Some 85,903,379 New Shares will be issued, although the rights issue will be subject to approval by shareholders at an Extraordinary General Meeting later this month.
The Rights Issue should:
Chief executive Geoff Cooper said: “The Rights Issue will strengthen the Group’s balance sheet during the current uncertain trading and macro-economic times, as well as position the Group to be ready to take advantage of, and capitalise on opportunities when markets eventually recover.
The Group’s brands have attractive market positions and the proceeds from the Rights Issue will facilitate our commitment to growing our market share and investing in the business which should lead to long-term shareholder value creation. While the Group remains and expects to remain within its banking covenants, the Rights Issue will provide significant and additional financial headroom.”