The Scotsman7 Mar 2009 09:46
Published Date: 07 March 2009
Heating and plumbing giant Wolseley yesterday became the latest firm to join the dash for cash from investors after confirming plans to raise £1 billion.
The firm's decision follows Monday's UK record £12.5bn cash call from HSBC and a £400 million move from Hovis bread firm Premier Foods.
Wolseley, which trades as Build Center and Plumb Center, will use the proceeds to reduce net debts of almost £2.5bn as of the end of January.
The rights issue and share placing came as the firm said interim pre-tax profits had tumbled by almost two-thirds to £97m in the six months to 31 January .
Wolseley has been a major casualty of the plunging US housing market and yesterday warned that downturns in the UK, Irish and Nordic economies would be "generally more severe" than those elsewhere in Europe. Alongside the fundraising, Wolseley will now focus on its key regions of North America, the UK, Nordic countries and France.
The group, which is "prioritising its resources in a challenging economic environment", is also looking to find a joint venture partner for its US building materials arm, or sell the business. (Published Date: 07 March 2009)