AVENG said yesterday it had concluded a rights offer and debt restructure on Friday, and had raised R392 million of new capital, while R100m in a follow-on rights issue at 1.5 cents a share is planned.
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 subscription, a statement said.
Given the interest, the additional rights issue was to further solidify the balance sheet and provide capital to accelerate the business plan and explore identified growth opportunities.
Aveng’s two main subsidiaries do major engineering, construction and maintenance projects in Australia, New Zealand and Pacific Islands, Southeast Asia and the Middle East, while the other does open cut contract mining in South Africa.
“This, combined with the recently released results for the six months ended December 31, 2020, 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 winding down its exposure to discontinued businesses would also continue.
Some R232m of the rights offer proceeds was used to partially settle debt at a discount.
Certain lenders subscribed for R396m of new equity at 5 cents a share compared to the rights offer price of 1.5 cents a share, in a specific issue for cash, and the proceeds were used to settle debt.
Debt had reduced by R1.1bn from R2.1bn reported at December 31. The remaining debt had been renegotiated.
BUSINESS REPORT ONLINE