Wagon sets wheels in motion for AIM move
Article Date: Sep 17 2008Automotive components group Wagon, which is listed on the LSE’s main market, says it expects its move to AIM to be completed by 6 October. The move was necessitated by a refinancing earlier this year, resulting in less than 25 per cent of Wagon’s shares remaining in public hands.
The £715 million turnover company raised £49 million before expenses in an August rights issue which saw the underwriters, WL Ross, pick up more than four-fifths of the shares.
The fundraising was part of a wider refinancing in which revised debt facilities of €155 million (£124 million) were agreed with five banks.
Shares in Wagon, which is based in Birmingham and has plants in ten countries, peaked at 263p in April 2006 and now trade at 3.4p. The company reported losses of £99 million last year but came close to breaking even this year, with losses of £1.9 million.
