Pendragon has had a 68% uptake from investors on a nine-for-eight shares rights issue.

The UK's biggest franchised dealer, headed by chief executive Trevor Finn, announced the rights issue of 751,577,623 at an issue price of 10p per share, aimed to raise £70m for the company, on July 14 with a deadline of August 16.

Pendragon had secured new credit facilities with its bankers until June 2014 conditional on the £70m being used to pay down some of its debt.

The car dealer's advisers will seek buyers for the remaining 32% of the new shares which existing investors had not accepted, with the net proceeds returned to those investors.

The new shares began trading today on the London Stock Exchange. They will represent around 52% of the enlarged share capital following the rights issue.

 

The dealer group's share price has halved to 10.5p per share since the July 14 announcement.