Building materials giant CRH said today it has received acceptances representing about 94 per cent of new shares offered as part of its €1.24 billion rights issue.
The rights issue closed at 11am yesterday and CRH is now asking its underwriters; UBS, J&E Davy, Barclays Bank, BNP Paribas and RBS Hoare Govett Ltd, to take up the remaining shares.
CRH said it plans to use the much of the cash to fund acquisitions which the company believes will become available at attractive prices as a result of the building slump in Europe and the US. It also plans to pay off around €500 million in debts.
CRH offered just over 152 million new shares to existing stockholders at €8.40 each on the basis of two new units for every seven ordinary shares held by each qualifying shareholder.
The asking price of €8.40 represents a near 40 per cent discount on the stock’s closing price of €15.40 on March 2nd, the day before the rights issue was announced. CRH stock closed at €15.95 last night.