Rainbow Chicken is to raise R3.9bn of new equity by way of a renounceable rights offer‚ it said on Thursday (6 December).
It plans to offer 276 965m new Rainbow ordinary shares at an issue price of R14.20 per share‚ in the ratio of 80 rights offer shares for every 100 held.
The rights offer price represents a 5% premium to the five-day volume weighted average price of shares as at 5 December‚ the company noted.
The offer relates to Rainbow's acquisition of an effective 64.2% stake in New Foodcorp Holdings‚ which was to be funded by the rights offer.
The proceeds will be used to fund the Foodcorp acquisition as well as other strategic growth opportunities.
Upon the successful completion of the aquisition‚ the consolidated debt of the Rainbow group will be significant‚ it added.
The rights offer will ensure that the consolidated capital structure of the group is appropriate‚ with flexibility to pursue strategic growth and development opportunities‚ it said.
The offer will be fully underwritten by Remgro‚ through its wholly-owned subsidiary Industrial Partnership Investments.
The last day to trade in Rainbow shares in order to participate in the rights offer is 1 February 2013.
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.