Eagers Automotive shares climb ahead of $309m retail raise
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More news: Eagers Automotive was one of the top performing ASX 200 companies in morning trade after confirming that its $309 million retail entitlement offer will open this evening.
Eagers shares were up 3.9% to $30.45 at 11:25am AEST, having surged 177.6% over the last year.
The retail offer is part of a wider $452 million raise to support the $1 billion strategic investment in CanadaOne Auto.
Eagers to open $309m retail equity raise
The news: Eagers Automotive announces its $309 million retail entitlement offer will open this evening as the automotive parts retailer plans to expand into Canada through a $1 billion strategic investment in CanadaOne Auto.
The raise is part of a wider $452 million partially underwritten accelerated non-renounceable entitlement offer. It was also announced that the $143 million institutional component has been completed.
The numbers: The offer price of shares under the retail entitlement offer will be $21 per share. This is a 28.4% discount on the last traded price of $29.32 on 30 September and a 26.6% discount to the five-day volume weighted average price of $28.62.
Of the $309 million expected to be raised, about $128 million is allocated as a pro-rata entitlement for Eager's director Nick Politis.
Eagers CEO Keith Thornton, who also intends to take up his full entitlement. Thornton owns about 1.4 million Eagers shares.
A top up facility that will issue additional new shares to shareholders that take up their full entitlement is also available under the retail offer. This is available up to a maximum of 50% of a shareholder’s entitlement and capped at $100,000 each.
The offer price of shares under the institutional entitlement offer was also $21 per new shares, with take up from 98% by eligible institutional shareholders.
Shares issued under a separate $50 million strategic placement to Mitsubishi Corporation are being issued at $18 each.
The context: Eagers announced plans to acquire 65% of the shares in the holding company of CanadaOne’s, one of Canada’s largest dealership groups, through a $1 billion strategic investment via cash and exchangeable shares.
The institutional entitlement offer and the strategic placement are both expected to be issued and begin trading on 14 October 2025. The new shares issued under the retail offer are expected to begin trading on 4 November.
The source: ASX
