LONDON (ShareCast) - (ShareCast News) - Fresh from its upbeat trading update, Vertu Motors has confirmed it aims to raise £35 million at a discounted fundraising to help fund acquisitions.
Despite the automotive retailer's shares trading at above 75p a share into the new year and having topped 70p earlier this month, Vertu and its brokers Liberum and Zeus have priced the placing at just 62.5p per share.

The intended 56m placing shares will represent roughly 14.1% of the company's newly enlarged shares in issue when they are admitted to trading on AIM.

Currently the UK's fifth largest automotive retailer, fresh from a £22m deal last week to buy the Greenoaks of Maidenhead Mercedes dealership, fast-growing Vertu aims to speed its expansion with more dealership purchases.

Three near term acquisitions have already been identified, with a combined consideration of close to £26m.

Two of the three targets have heads of terms agreements in place, with all three acquisitions expected to complete between March and June 2016.

"The remainder of the net placing proceeds will be used to pursue other portfolio-enhancing acquisition opportunities as industry consolidation continues."

The bullish trading update from the company on Tuesday upgraded annual profit expectations and flagged that the outlook for the key March new vehicle market is strong, with the company's new car order book for March up by 11.6% at this stage.

Vertu shares were down 6% to 64.5p by mid-afternoon on Wednesday.

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