Aveng concludes successful rights issue and debt restructure
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AVENG said yesterday it had on Friday successfully concluded a rights offer and debt restructure, and had raised R392 million of new capital.
A “much higher than anticipated interest in the rights offer” saw shareholders subscribing for R276m and the underwriters taking up their fees and their minimum required subscription, a statement from the group said.
The conclusion of the rights offer brought to a culmination a restructuring first announced in November last year.
The group’s two main subsidiaries do major engineering, construction and maintenance projects in Australia, New Zealand, the Pacific Islands, south-east Asia and the Middle East, while the other subsidiary does open cut contract mining in South Africa.
“This, combined with results for the six months ended December 31 and a growing order book, provides Aveng with a new platform to pursue its strategy around its core businesses, McConnell Dowell and Moolmans,” the group said.
The non-core asset sale programme and the winding down of its remaining exposure to discontinued businesses would also continue.
Some R232m of the rights offer proceeds was used partially to settle debt “at a significant discount”.
Certain lenders subscribed for R396m of new equity at 5 cents a share compared to the rights offer price of 1.5c, in a specific issue of shares for cash, and these proceeds were used to settle debt.
Debt has been reduced by R1.1 billion from R2.1bn reported at December 31, 2020. The remaining debt had been renegotiated.
BUSINESS REPORT ONLINE