BBA calls for pounds 126m via rights: Issue to fund two purchases

BBA Group, the automotive, industrial and aviation group, launched a pounds 125.9m rights issue yesterday to help to fund its bid to become one of the world's leading suppliers of high voltage electrical power equipment.

BBA is making two separate acquisitions costing pounds 86.1m, including pounds 32.2m of assumed debt, in Switzerland and Germany. The pounds 39.8m cash left over after the acquisitions will be used to cut BBA's borrowings.

Peter Clappison, finance director, said end-1992 debt would fall from 61 per cent to 21 per cent of shareholders' funds including the sale last week of its Pacific BBA subsidiary for pounds 59m. Gearing could rise to 30 per cent or pounds 150m by the end of 1993.

BBA is buying Haefely, a Basle- based manufacturer of electrical components and test equipment used in high voltage electricity transmission, for Sfr110m ( pounds 49m). About a quarter of the price is deferred until January 1995.

BBA is paying pounds 4.9m for MWB. Located in Bamberg, Germany, it is world leader in making explosion- proof gas-insulated instrument transformers and also manufactures test equipment.

John White, group managing director, said the aim was to combine the new companies with BBA's Canadian subsidiary, Trench, which is a world leader in air-cored reactors and the largest maker of instrument transformers in North America.

'It is consistent with our strategy of focusing on a portfolio of world class core activities. Synergies will enhance our earnings in 1994.'.

The new grouping, Haefely Trench, would have a market share of about one-third in coil products, instrument transformers and high voltage test equipment. Customers are electricity utilities and prime contractors.

The rights are on the basis of one new share at 142p for every four ordinary shares and 7.3206 convertible shares now held. BBA shares closed 7p down at 170p.

There was disquiet among some analysts that BBA had begun to spread its interests too widely.

Sandy Morris, an analyst at NatWest Securities, said: 'I asked BBA how many core activities they now have and we got as far as eight. The acquisitions themselves are difficult to take issue with, but it's a rights issue too far and not really in the shareholders' interests.'

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before