Wolseley Plc, the U.K.-based parent company of Stock Building Supply, said 98% of its shareholders have bought into its share offering of 781 million British pounds (US$1.3 billion), according to reports by BBC News and The Wall Street Journal.
In total, Wolseley is looking raise 1 billion British pounds (US$1.5 billion) to help the company avoid defaulting on loans, which have been strained in large part due to Stock's enormous losses in recent years. As of Jan. 1, the building material supplier's net debt stood at 2.49 billion British pounds.
On March 6, Wolseley revealed it is seeking a joint-venture partner in Stock, and that if it doesn't find such an investor by Aug. 1, it will exit the company. Stock provides about 10% of Wolseley's worldwide revenue.
In the six months through Jan. 31--the first half of its current fiscal year--Stock's revenue fell 25.5% to $1.34 billion, leading the company to record an operating loss of $129 million. Raleigh, N.C.-based Stock has closed 83 branches and cut 4,330 positions during the first half of its fiscal year.