Aveng to get shareholder approval for its planned second rights issue
CAPE TOWN - AVENG, the civil engineering, construction and mining contract services group, said yesterday that it plans to proceed with a R100 million rights issue, following the success of its R300 million issue last month.
The group completed the initial R300 million rights issue on March 19, but there had been greater than expected interest, and some shareholders had indicated a willingness to provide further capital to support the company, after the initial rights issue had been completed, it said in a statement yesterday.
An extraordinary general meeting was planned for May 5 so that shareholders could approve the R100 million rights issue.
“Such additional capital was not anticipated at the time of developing the Balance Sheet Restructure Transaction. The additional capital will provide Aveng with an opportunity to further solidify its balance sheet, accelerate its business plan, and fund growth opportunities, mainly in the Moolmans business,” the statement said.
Aveng’s share price closed unchanged at 4 cents on the JSE yesterday.