Plan to raise R350m from rights issue
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.