Support for Wolseley's cash call

Wolseley's share price

Shareholders in the building materials group Wolseley have overwhelmingly supported its cash call.

They bought 98% of the new shares they were offered in a £1bn rights issue.

Wolseley said the main reason behind the share issue was the continued impact on its business of the deterioration in the US housing market.

The company had said it would use the funds to reduce net debts of about £2.5bn after reporting a 61% fall in half-year profits.

It plans to focus on its core businesses in the UK, the Irish Republic, Scandinavia and France, and on its plumbing and heating business in North America.

Wolseley, which owns Plumb Center and Build Center in the UK, has cut about 17,000 staff and shut 713 branches globally since August 2007.

E-mail this to a friend

Printable version