Esor rights offer terms have been published
LISTED construction group Esor has published the terms of its proposed fully underwritten rights offer to raise R37.54 million.
Esor will offer a total of 98.79 million shares in Esor to qualifying shareholders at a ratio of 25 rights offer shares for every 100 Esor shares held on the record date at a price of 38c a rights offer share.
February 3 is the record date for the purposes of determining which shareholders are entitled to participate in the rights offer.
The full proceeds from the rights offer will be used to repay a credit facility that was made available to Esor by Geomer Investments, a material shareholder of Esor, to fund the acquisition by Esor in October of pipeline rehabilitation company Tuboseal Services for R15m and the business assets and operations from Tuboseal for R18.25m.
The rights offer is being fully underwritten by Geomer Investments.
It will open at 9am on February 6 and close at noon on February 17.
The results will be announced on February 20.