A LONG WAY OFF

Finweek English Edition - - INVESTMENT -

A third ex­am­ple of the win­ners ver­sus lag­gards is RBA Hold­ings, which an­nounced the pur­chase of a R42m tract of land. The ques­tion is how RBA is go­ing to pay for it. Ear­lier in the year it no­ti­fied the mar­ket that it was buy­ing a R14.5m prop­erty sub­ject to fi­nanc­ing, that fi­nance proved very tricky and the set­tle­ment date kept be­ing ex­tended, with the last no­tice be­ing that it had been ex­tended to 1 Au­gust. We’ve had no fur­ther up­dates so one must as­sume that deal col­lapsed. The com­pany is now try­ing to raise R40m fi­nance for this deal and, while it has raised al­most R13m via a rights is­sue and a sale of shares for cash, the R40m fund­ing seems a long way off.

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