Torotrak offer raises acquisition cash

LANCASHIRE engineering business Torotrak said it saw a strong response to a share offer it launched to fund its £23m acquisition of automotive technology firm Flybrid Automotive.

Torotrak, a developer of gearless traction drive technology, is raising £16m by issuing around 90 million shares at 18p through a firm placing, a placing and an open offer.

Some 19.3 million open offer shares, or 87%, were taken up. The balance will be taken up by those involved in the share placing.

Last year Torotrak paid £3m for a 20% stake in Silverstone-based Flybrid. It developed a fuel efficiency device for Formula 1 cars which is being applied to cars and commercial vehicles.

The two companies have been working on a system for hybrid vehicles that uses a flywheel rather than batteries to store energy. They say this is cheaper and will be in demand as vehicle manufacturers chase tough Co2 targets.

Under the terms of the deal it will pay £8m in cash and shares on completion with the remaining £15m linked to performance targets. Flybrid’s managing director, and largest shareholder, Jon Hilton will join the Torotrak board along with technical director Doug Cross.

Torotrak’s chief executive Jeremy Deering said: “We sought to ensure that all our shareholders, including our loyal private shareholders, could participate in this fund raise. I am delighted that our shareholders have supported the open offer and the company in such a positive manner.”

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