Repco seeks to raise a further $A10m for auto parts acquisition

Hot on the heals of a $A52.8 million share placement to fund the purchase of an Australian auto parts firm, Repco has today unveiled plans to raise a futher $A10m for the deal.

In December, Repco entered an agreement to acquire Ingram & McLeod Accessories, the auto parts unit of Alesco Corporation.

Repco raised $A52.8 million in an institutional share placement at $A3.16 a share as part of the funding for the acquisition.

Today trans-Tasman retail shareholders were offered a chance to take part in the funding via a purchase plan for 1575 additional shares, Repco's board said in a statement to NZX.

It hoped the sale of these shares would raise $A10m.

These shares would not be subject to brokerage or other transaction costs, and once issued would be identical to other ordinary shares and eligible to the interim dividend for the first half of 2005.

"If the total value for shares exceeds $A10m, we reserve the right to scale back the applications accordingly," Repco said.

- NZPA