rainbow chickenRights offer to fund Foodcorp buy

Rainbow Chicken would fund the acquisition of a 64.2 percent stake in Foodcorp for about R1 billion by way of a fully underwritten rights offer, the chicken producer said yesterday. The company proposed that a total of R3.9bn of new equity be raised through a renounceable rights offer of 277 million new ordinary shares at an issue price of R14.20 each. The proceeds from the rights offer would be used to fund the Foodcorp acquisition, as well as strategic growth and development opportunities. On completion, the consolidated debt would be significant, it said. The issue would be fully underwritten by Remgro, through its subsidiary, Industrial Partnership Investments. Rainbow Chicken gained 2.6 percent to R13.85. – Nompumelelo Magwaza