Rescue deal for Lotus
NZPA London Britain’s biggest car auction firm has agreed to underwrite a £3.5 million ($8.3 million) rescue package for cash-starved Lotus Car Company, the prestigious sports car builder has announced. The deal came after recent reports that the Toyota Motor Company, Japan’s largest carmaker and supplier of some Lotus parts,
was considering a rescue deal. Toyota denied the reports. Under the plan, British Car Auctions, Ltd, will become the biggest single shareholder in Lotus with at least 20.4 per cent of the total stock, said a Lotus spokesman, Mr Don McLauchlin. B.C.A. will buy three million new Lotus shares at 40p each. Lotus is also offering owners of its present
block of 5,830,030 shares the option to buy new stock at the same price on a one-for-one basis, said Mr McLauchlin. B.C.A. will buy up any that are not sold to shareholders. The London market price recently for Lotus shares was 61p. The auction company has agreed that it will not take control of the Norwichbased car company having
contracted to limit its vote to 40 per cent of the total stock issued. Lotus has been negotiating a refinancing deal since American Express gave notice that it was withdrawing its support. Lotus owed the company an estimated £ 1.5 million. Under the deal, the B.C.A. chairman, Mr David T. Wickins, will join the board of directors of Group Lotus.
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Press, 2 July 1983, Page 9
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232Rescue deal for Lotus Press, 2 July 1983, Page 9
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