Avis Europe To Raise 250 M

Privately-held car rental company Avis Europe Plc said on Monday it is to float on the London Stock Exchange in a move which will raise 250 million ($410 million) of new money.

Avis said in a statement part of the proceeds would be used to repurchase General Motors Corp's holding, while the stake held in Avis Europe by Avis Inc would be bought in prior to the flotation. Avis will also acquire a new 40-year licence to use the Avis name in Asia.

Iits operating profits for the six months ended August 31, 1996, rose by 16.3 per cent from a year earlier to 54.2 million.

 

"Avis Europe continues to experience substantial business growth across Europe. Flotation will enable us to capitalise on market opportunities across existing territories and fund expansion into the emerging markets of central and eastern Europe and, in particular, the newly acquired territories in Asia," chairman and chief executive Alun Cathcart said.

The float will be through a UK and international placing and an intermediaries offer in the UK and is expected to begin at the end of this month. Ahead of it, Avis Europe and General Motors have entered into new long-term fleet supply and marketing agreements.

The Avis car rental business started in the US in 1946. The European division was floated in 1986 before being taken over in 1989 by a consortium of Belgium's SA D'Ieteren, which now owns 77.1 per cent, General Motors, with 14.2 per cent, and Avis Inc, with 8.7 per cent.

Avis Europe said it was the leading car rental company in Europe, serving more than five million customers through some 2,400 locations.