UK-based consumer packaging group Rexam has proposed a rights issue to fund a takeover of Brazil’s leading beverage can maker.

Rexam aims to raise £218m from the rights issue to fund its £272m purchase of Latasa.

The balance will be financed from existing facilities with synergies of £20m by year three, said Rexam.

Rexam said the move would position it as the No 1 beverage can maker in the Brazilian market, which has an annual consumption of 10 billion cans.

Rexam noted that trading in each of its sectors remains encouraging, except for beverage cans in Germany.

Rexam added that it hopes to announce the appointment of a new chief executive before the end of the year.