Waterford Wedgwood has unveiled plans to raise EUR 153.7M in an effort to break out of its problems. The loss-making group, chaired by Sir Anthony O'Reilly, is to raise money by issuing new shares. Funds will be used for a 3y cost-restructuring programme that will see more production moved to the Far East. Sir Anthony & Peter Goulandris, who are already the group's biggest shareholders, have agreed to purchase EUR 60M new shares out of their own pockets. Another shareholder Corporate Partners II equity fund of Lazard Alt Investments, has agreed to buy a EUR 20.3M tranche of the issue. Agents JPMorgan Cazenove, Davy&Lazard will attempt to place the rest of the shares on a currently depressed stock market. In a statement to the stock exchange, WW said the proceeds of the share placing "will be used to accelerate & extend the scope of the company's cost reduction plans". It would also finance additional marketing and advertising support and reduce indebtedness. It is the latest in a series of rescue plans for the troubled table-top goods group, whose brands include Waterford Crystal, Royal Doulton and Wedgwood. Despite the previous turnaround plans, the company still made a pre-tax loss of EUR 241.6 million for its latest year to April 2008.
