Shares of automotive aftermarket business, GUD Holdings Limited (ASX: GUD), soared as much as 8% higher today.
Following GUD's decision to acquire leading automotive aftermarket business Brown & Watson Pty Ltd its shares were placed in a trading halt, whilst it raised money from institutional investors.
To fund the estimated $209 million purchase, GUD said it'd raise $15 million from retail investors, at least $74.5 million from institutional investors and the rest would be taken on as debt.
If you want to get my take on the announcement, you can read more here.
This morning GUD announced it has successfully undertaken the institutional component of the capital raising, selling 10.6 million shares for an average of $7.45 (representing a 1.8% discount to the last traded price on Monday), and generating $79.3 million from new and existing investors.
"We are very pleased with the strong level of demand received in the Placement from both existing and new shareholders demonstrating support for our growth strategy," GUD CEO Jonathan Ling said.
GUD is the owner of automotive aftermarket brands such as Ryco, Wesfil and Goss. Brown & Watson is a leading supplier of aftermarket battery, power, lighting and electronic products.
Along with fellow ASX-listed automotive businesses such as Burson Group Ltd (ASX: BAP), AP Eagers Ltd (ASX: APE), Automotive Group Holdings Ltd (ASX: AHE) and ARB Corporation Limited (ASX: ARB); GUD has handily outperformed the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in 2015.
GUD's latest acquisition – coupled with a kind federal budget released overnight – could see it continue its impressive streak for some time.
