Automotive components group Wagon (WAGN) has received valid acceptances for less than 20 per cent of its 10-for-one rights issue.
Wagon, whose corporate headquarters are at Birmingham Business Park, said just 241.99 million shares, representing about 19.86 per cent of the total number of rights issue shares available, had been bought by investors.
The company announced the rights offer in June with the aim of raising £49 million. The net proceeds of the rights issue, which has been underwritten in full by funds managed by WL Ross, a major shareholder in Wagon, were to be used in part to provide capital expenditure funding to support the company’s recent contract successes and to partly prepay existing debt facilities.
RBS Hoare Govett, which is acting as the company’s agent for the issue, is trying to arrange buyers for the 976.66 million shares which were not taken up. It has until 3pm tomorrow to sell as many as it can.
Any shares which remain unsubscribed at the issue price will then be taken up by the underwriters.
A further announcement on the rights issue is expected in due course.
