Vestas raises €442m from new shares

Vestas confirmed it will receive about €442m ($597m) in gross proceeds from the share issue it announced earlier this week.

The Danish wind group said the capital increase of 20,370,410 shares was oversubscribed at a price per share of DKr162.

Vestas shares closed yesterday at DKr170 in Copenhagen, 4% lower on the day.

The new shares are expected to be listed in Copenhagen from 12 February.

The company – which unveiled its full-year financial results this week – said it plans to use the proceeds “to provide greater financing flexibility and to further enhance Vestas’ financial stability, by strengthening its solvency ratio and obtaining more flexible banking  arrangements.

“The board believes that this will facilitate the generation of additional business opportunities, thereby accelerating the company's strategy of delivering profitable growth."

The company’s CEO Anders Runevad yesterday said the new capital will not be used to fund mergers and acquisition activity, or for injection into its offshore wind joint venture with Mitsubishi Heavy Industries.

Vestas also this week revealed it had reached agreement with four banks over a new five-year revolving credit facility totalling €850m.