Raymarine explores fundraising options
BANGALORE, India – Raymarine says it is operating close to the limit of its current bank facilities and is exploring an equity fundraising or a sale of the business, according to a recent Reuters story.
In the absence of either equity fundraising or a sale, Raymarine says it will seek to secure additional medium-term debt facilities with its banking group. The company says its banking group has shown a willingness to enter into talks related to the covenants and, if necessary, may consider providing additional short-term funds while the medium-term funding options were investigated, Reuters reported.
Buyers would balk at paying Raymarine’s current net debt value at this stage, Panmure Gordon & Co analyst Oliver Wynne-James told Reuters.
The analyst said either Norway-based Navico or U.S.-based navigation device maker Garmin could be potential buyers for Raymarine.
Both companies, however, do not need to buy it “as they are busy enough with their own marine electronic assets,” Wynne-James said.
Raymarine said in April it expected to make a pretax loss for the current year ending Dec. 31. Last week the company said it continues to trade broadly in line with market view and that the global sales in May met its expectations, Reuters reported.
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