The issue will be priced at 400p per share, offering more than a 20% discount to its current trading price of 502p. The shares will start trading on the London Stock Exchange on April 17.
The money raised will be used to fund two new acquisitions. Autologic is looking to purchase a 40% stake in Compagnie d'Affretement et de Transport (CAT), Renault's logistics business, for Eu76.3m. CAT's activities include finished vehicle logistics, international freight and replacement parts distribution for Renault's passenger and truck divisions. Autologic also plans to buy Axial, an automotive distribution business with operations in UK, France, Spain and Portugal, for Eu120m. Both acquisitions are subject to the approval of Autologic's shareholders, who will meet on April 12.
Autologic are looking to fill a gap in a rationalising motor industry. Reg Heath, Autologic's chairman, said in a statement: "Vehicle manufacturers increasingly seek to place responsibility for logistics with a single supplier who manages the entire supply chain." The purchase of CAT and Aixal would, according to Heath, create the first independent pan-European automotive logistics provider.
Results released today show that Autologic recorded profits before tax of £13.5m, an increase of 14.4% from 1999. The results were well received by the stock market but Heath said that recent announcements of factory closures could affect future profits.
The one for two rights issue has been underwritten by Cazenove. Directors, senior management and others connected to the company have already taken up 27% of the offer.