Taste Holdings: R180m rights offer already secured

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TASTE Holdings would raise R180 million through a rights offer to shareholders, the listed food service company said yesterday. The offer would formally open in mid-September, and Taste said it had received commitments from 59.4 percent of its shareholder base to follow their rights. Key shareholders were prepared to take up to a further 41.1 percent of the rights offer shares if other shareholders did not follow their rights. The company will issue about 60 million new shares at R3 each, a discount of nearly 20 percent to the 30-day volume-weighted share price when the rights offer was approved on July 31. This follows the company raising R125m under its corporate bond programme on July 30, of which R61m was used to settle term debt, with the remainder earmarked for future acquisitions and leveraging the Domino’s Pizza licence. The shares rose 4.29 percent to R3.40 yesterday. – Nompumelelo Magwaza

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