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Aero Inventory raises £92m for Airbus deal

Michael Harrison,Business Editor
Saturday 21 January 2006 01:00 GMT
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The company plans to use the additional funds to help it become a nominated supplier to Airbus, the world's biggest aircraft manufacturer with an orders backlog worth $220bn (£235bn).

The AIM-listed company has raised £84.9m through a discounted three-for-two rights issue at 300p a share and a further £7.4m through a placing of shares. Together with increased debt facilities, the new equity will give Aero Inventory about £158m to fund its expansion.

The fundraising has been fully underwritten by Aero Inventory's new broker and nominated adviser JP Morgan Cazenove and was greeted positively in the City. Its shares closed 5 per cent higher at 472.5p.

Airbus is expected to make a decision in the first half of this year about whether to make Aero Inventory a nominated service provider - a move which would have a huge impact on the company. Airbus has 4,130 aircraft in service and outstanding orders for 2.177 jets. Last year, it was the world's biggest jet maker once again, beatingBoeing with 1,055 orders worth $95bn and 378 aircraft deliveries.

Rupert Lewin, the chief executive of Aero Inventory, said although a deal with Airbus would have a "material effect" on the company, it had opportunities elsewhere to use the newly raised capital.

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