Rights offer share price is 38c

LISTED construction group Esor reported yesterday that its planned R37.54 million rights offer was unconditional and may now be implemented. In terms of the rights offer, Esor will offer shareholders a total of 98.79 million rights offer shares at 38 cents a rights offer share in a ratio of 25 rights offer shares for every 100 Esor shares held on February 3, the record date for the rights offer. Esor previously said the full proceeds from the rights offer would be used to repay a credit facility that was made available to the company by Geomer Investments, a material shareholder of Esor. This credit facility was used 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, with the results announced on February 20. – Roy Cokayne