Travis Perkins receives 92.7% rights take-up
Published: 15 June, 2009
LONDON: Building materials supplier Travis Perkins has received 92.7% take-up for its fully underwritten 7-for-10 rights issue to raise £314m gross and £300m net.
The group said it has received valid acceptances in respect of 79.6m new shares, Citigroup Global Markets and HSBC Bank plc, acting as joint bookrunners, have procured acquirers for the 6.8m remaining new shares at a price of 550p per share.
Travis, which has debts of near £1bn, will use the money to help reduce debt and improve its trading position through the recession.
Earlier last week, Collins Stewart upgraded its outlook for Travis Perkins shares with a target price of 604p. It said growing evidence of stability in UK housing justified the upgrade from 580p to 604p.
Collins Stewart said:"Market conditions remain mixed but we continue to see Travis as operationally better placed than rivals. Following the rights issue, the group is on a firmer financial footing and may be able to pick up smaller companies at attractive prices during the downturn".