Plan to raise R350m from rights is­sue

The Star Early Edition - - COMPANIES - – Siseko Njobeni

DIS­TRI­BU­TION and Ware­hous­ing Net­work (Dawn) said yes­ter­day that it in­tended to raise about R350 mil­lion in gross pro­ceeds through a rights is­sue. The com­pany said it had agreed terms with a po­ten­tial un­der­writer and ex­pected the pro­posed rights is­sue to be fully un­der­writ­ten. “In ad­di­tion, the com­pany has re­ceived un­der­tak­ings of sup­port for the pro­posed rights is­sue from share­hold­ers rep­re­sent­ing in ex­cess of 60 per­cent of Dawn’s is­sued share cap­i­tal,” the com­pany said. The com­pany last week said its board was con­sid­er­ing var­i­ous ini­tia­tives to, among oth­ers, strengthen its bal­ance sheet “to al­low for the align­ment of its cap­i­tal struc­ture to its busi­ness model and cur­rent en­vi­ron­ment”. It said it would post a cir­cu­lar to share­hold­ers on Fe­bru­ary 2 in or­der to con­vene a share­hold­ers’ ex­tra­or­di­nary gen­eral meet­ing to ap­prove the nec­es­sary res­o­lu­tions re­quired to im­ple­ment the pro­posed rights of­fer in early March. Dawn’s share price closed 6.18 per­cent lower at R2.48 a share on the JSE yes­ter­day.

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