Eagers Automotive has successfully completed the retail component of its $452 million accelerated entitlement offer, securing $310 million. This brings the total equity raised to approximately $502 million, including a $50 million strategic placement to Mitsubishi Corporation. Settlement of the new shares is expected to occur around November 3. Eagers Automotive is an automotive retail group operating in Australia and New Zealand. The company focuses on the sale and servicing of passenger and commercial vehicles.
Proceeds from the entitlement offer will be used, in part, to finance the acquisition of a 65 per cent stake in CanadaOne Auto for approximately $1.043 billion. This strategic move aims to expand Eagers Automotive’s presence in the North American market and diversify its portfolio of automotive retail businesses.
According to the announcement, retail shareholders demonstrated strong support for the offer, taking up 82 per cent of their available entitlements. Notably, director and major shareholder Nick Politis fully subscribed to his allocation, signalling confidence in the company’s strategic direction and future prospects.
The remaining shortfall in the retail component has been allocated to the top-up facility and sub-underwriters, ensuring the successful completion of the capital raising initiative. This financial manoeuvre positions Eagers Automotive to proceed with its planned acquisition of CanadaOne Auto and further growth initiatives.
