Lookers to raise £80m

26th Jun 2009 13:20

Car dealer Lookers has announced a placing and open offer to raise about £80.7m to help ease its debt position, which has deteriorated amid a severe downturn in car demand.The firm will issue just over 200m shares at 40p each, a 19% discount to the closing price yesterday. Shares in the firm rose to 53p after the placing announcement."The group's balance sheet will be strengthened significantly as a result of the firm placing and placing and open offer," chairman Phil White said.He said the firm was currently trading relatively resiliently. Like-for-like new car sales for the first five months of the year are 10% ahead of the market, Lookers said.The company said it expects the government's £300m vehicle scrappage scheme, which subsidises motorists to trade in their old cars for new ones, should help its new car sales.