STOCKHOLM, April 29 (Reuters) - Sweden’s Veoneer said it was seeking funding of up to $500 million to plug a funding deficit as the electronic car products maker faces an auto market downturn and high costs for developing new products.
The company, which makes radars, visions systems, advanced driver assistance software and autonomous drive software, said it expects 2019 organic sales to decline compared to last year, compared to a previous guidance of flat to down slightly.
Veoneer said it was facing deteriorating business conditions in the near term at a time when it had ongoing capital needs to meet research, development and expenses costs as well as to deliver against its order book.
“This situation... has led the company to consider alternatives for approaching the capital markets for a capital raise of up to $500 million,” it said in a statement on Monday. (Reporting by Esha Vaish and Johannes Hellstrom in Stockholm)