Eagers Automotive has successfully closed its retail entitlement offer, raising approximately A$310 million as part of a broader A$502 million equity raising to fund a major acquisition in Canada.
- Retail entitlement offer raised ~A$310 million with 82.1% take-up
- Total equity raising of approximately A$502 million including Mitsubishi placement
- Funds to partly finance acquisition of 65% stake in CanadaOne Auto
- Strong participation from director and largest shareholder Nick Politis
- New shares to commence trading on ASX from 4 November 2025
Equity Raising Completion Marks Strategic Milestone
Eagers Automotive Limited has announced the successful completion of the retail component of its partially underwritten entitlement offer, raising around A$310 million. This retail tranche is the final stage of a larger equity raising totaling approximately A$502 million, which also included a strategic placement of A$50 million to Mitsubishi Corporation. The capital raise is a critical step in funding Eagers’ planned acquisition of a majority stake in CanadaOne Auto, a significant move into the Canadian automotive retail market.
Strong Retail Support and Shareholder Confidence
The retail entitlement offer saw an encouraging take-up rate of 82.1%, reflecting solid backing from Eagers’ retail shareholders. Notably, Nick Politis, Eagers’ director and largest shareholder, fully subscribed to his entitlement, contributing approximately A$128 million. This level of insider participation often signals confidence in the company’s strategic direction. Additionally, shareholders took advantage of the top-up facility, applying for shares beyond their entitlement, which further boosted the raise.
Funding a Transformative Acquisition
The net proceeds from the equity raising will be deployed to partly fund the acquisition of a 65% equity interest in CanadaOne Auto’s holding company, valued at approximately A$1.043 billion. This acquisition represents a major expansion for Eagers, extending its footprint beyond Australia into the North American market. While the purchase price is subject to customary adjustments and currency exchange considerations, the deal positions Eagers to leverage growth opportunities in a new geography.
Next Steps and Market Impact
Settlement of the new shares issued under the retail entitlement offer is expected by the end of October, with trading commencing on the ASX from 4 November 2025. The new shares will rank equally with existing ordinary shares, ensuring shareholders’ rights remain intact. Investors will be watching closely how the integration of CanadaOne unfolds and how the expanded capital structure influences Eagers’ financial performance and share price in the coming months.
Bottom Line?
Eagers’ successful equity raise sets the stage for a bold international expansion, but execution risks remain as the CanadaOne acquisition proceeds.
Questions in the middle?
- How will the acquisition of CanadaOne Auto impact Eagers’ earnings and cash flow?
- What are the integration challenges and timelines for the CanadaOne deal?
- Will the increased share capital dilute existing shareholders’ value over time?