Wolseley’s plan to raise £1bn through a shares and right issue has been approved at a meeting of shareholders.
Shareholders sanctioned the company’s plans to raise £270m by the placing of 225 million existing shares at 120p each. Wolseley’s capital reorganisation programme and an 11 for 5 Rights Issue was also approved.
“We thank shareholders for their support,” said John Whybrow, chairman of Wolseley plc.
“Following the completion of the comprehensive financial restructuring the company’s balance sheet will be substantially strengthened.
“In addition, the clear focus on those core markets where Wolseley has built leading positions will enable the Group to maintain investment in our key most profitable markets and remain strongly positioned to capitalise on future market recovery.”
Wolseley has been struggling under a £2.5bn debt burden while sales in key markets have declined.
