- Carsales.com (CAR) is planning to raise $600 million to fund the purchase of a 49-per-cent stake in Trader Interactive
- The classifieds business will spend around $797 million to buy a portion of the U.S. digital marketplace business
- Along with the fully underwritten non-renounceable entitlement offer, CAR will also use existing debt facilities to pay the remaining consideration
- Under the capital raise, shareholders will be offered one new share for every 6.99 held — with the new shares priced at $17 each
- Carsales.com entered a trading halt ahead of the fundraise and acquisition announcement, with shares last trading for $19.51 per share
Carsales.com (CAR) has announced plans to raise $600 million in additional capital to fund the purchase of a 49-per-cent stake in Trader Interactive.
The classifieds business has revealed buying a portion of the U.S. digital marketplace business is set to cost around $797 million.
It plans to fund the acquisition via the $600 million fully underwritten non-renounceable entitlement offer and using existing debt facilities.
Under the capital raise, which comprises of an institutional and retail offer, shareholders will be offered one new share for every 6.99 held.
The new CAR shares will all be priced at $17 each — which represents a 12.9 per cent discount to the last closing price on May 11.
Commenting on the Trader acquisition, Carsales.com CEO Cameron McIntyre said it would help the company grow significantly.
“We have demonstrated an ability to build valuable international partnerships over many years in our automotive business and see this acquisition as an important milestone in carsales’ international and vertical marketplace
expansion,” he said.
“This acquisition is expected to accelerate our international growth strategy by providing us with exposure to a significant market in the United States across attractive non-automotive verticals,” Cameron added.
The institutional entitlement offer closes tomorrow, May 13, while the retail offer won’t open to later this month.
Carsales.com entered a trading halt ahead of the fundraise and acquisition announcement today, with shares last trading for $19.51 per share on May 11.