Shareholders back funding drive

JUST over half of Waterford Wedgwood shareholders have agreed to back the company’s latest fundraising drive.

The struggling crystal and luxury goods maker said yesterday that 54.3% of shareholders have taken up their rights, which will raise just over €60 million for the company.

The company’s chairman Tony O’Reilly and Peter Goulandris, the company’s largest shareholders, are taking up their full rights and will control more than 50% of the shares post the rights issue.

Davy Stockbrokers has agreed to subscribe for the remaining shares and is expected to sell these on to its own clients.

Waterford asked existing shareholders for three new shares for every 13 they hold at 6 cents a share. It is the third rights issue by the company in as many years.

The €60.2m raised will be used to fund the company’s working capital requirement and see the firm through its current crisis.

Last month, Waterford announced losses of €188m, while sales (excluding those of Royal Doulton, which it acquired last year) were flat.

The company, which described the losses as “unacceptable”, said the new funds will help return it to profitability.

It believes that the reduction in its cost base from job cuts and factory closures and the addition of new product lines, including designs from celebrity chef Gordon Ramsey, will reverse its fortunes.