BUILDING SUPPLIES company Wolseley raised £1.05 billion (€1.11 billion) in a fully-underwritten discounted share sale to rebuild its debt-laden balance sheet, sending its shares to an 18-year low.
Wolseley, grappling with market crashes in Britain and the US, said yesterday it would also exit its loss-making US building supplies division Stock and had agreed a £1 billion two-year forward start debt facility.
“We are confident the measures announced today represent a comprehensive package to strengthen the balance sheet and position the group for the future,” chief executive Chip Hornsby told reporters after the group announced the measures and posted a first-half loss of £965 million.
Mr Hornsby said investors were fully supportive of its plans to raise £781 million in an 11-for-5 rights issue along with £270 million in a placing at a 27 per cent discount to Thursday’s close.
Finance director Steve Webster said the company had support for the fundraising from institutional investors, including US holders and some of the group’s major shareholders.
Wolseley, which cut 10,200 staff in the first-half to the end of January, said it had decided to focus its business in Britain, Ireland, Scandinavia and France, and on supplying plumbing and heating equipment in North America.
The company last week announced the loss of 180 jobs in its Irish business.
Its best known brands here include Brooks, Tubs and Tiles and Heat Merchants.
Mr Hornsby told reporters he was confident of exiting Stock.
He declined to comment on whether Irish rival CRH was one of the interested parties. – (Reuters)
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