Turners announce equity raising

Turners Automotive Group Limited (Turners) has announced a NZ$25 million equity raising through an underwritten placement of new ordinary shares. Turners has sought a trading halt from the NZX and ASX pending completion of the Placement. The Placement has been fully underwritten at a fixed price of $3.02 per share. The equity raised under the placement and share purchase plan will provide Turners with capital for investment to fund strategic growth opportunities, including: Continued growth of the Turners finance book, which is currently expanding at approximately $10 million of receivables per month; and Strategic dealer and property acquisitions to grow the distribution network and capabilities of the Automotive Retail Division. Commenting on the equity raising, Todd Hunter, Chief Executive Officer, said: “Turners continues to go from strength to strength through leveraging its automotive network and product portfolio, as well as executing acquisitions to grow our network and capabilities. Organic growth has been underpinned by leveraging our #1 used car sales market position and integrated product portfolio. Loan origination is at its highest level ever, with finance receivables growing at approximately $10 million per month year to date. Our recent acquisitions of Buy Right Cars and Autosure Insurance are both performing ahead of expectations. The equity raising will enable Turners to fund its rapidly growing finance receivables, as well as provide capital for further strategic property and dealership acquisitions.”