Aveng aims to raise more than R300 million through a fully co-underwritten rights offer to restructure its balance sheet and deleverage. Photo: Reuters
Aveng aims to raise more than R300 million through a fully co-underwritten rights offer to restructure its balance sheet and deleverage. Photo: Reuters

Aveng to restructure its balance sheet through a R300m rights issue

By Edward West Time of article published Jan 27, 2021

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JOHANNESBURG - CONSTRUCTION and resources company Aveng aims to raise more than R300 million through a fully co-underwritten rights offer to restructure its balance sheet and deleverage.

Aveng said yesterday that restructuring its balance sheet would allow the group to reset its capital structure by deleveraging its balance sheet by more than R1 billion. It would also extend its debt maturity profile to three years and materially improve the group’s South African liquidity pool.

The company will issue up to 20 billion ordinary no par value shares, and as many class A shares as may be required to be issued to the underwriters of the rights offer in the place of ordinary shares, it said in a statement.

The shares will be offered at a subscription price of 1.5 cents per share in the ratio of 103.12203 rights offer shares for every 100 Aveng ordinary shares held, it added. Aveng shares were trading at 3c each yesterday.

“Following this transformational event, Aveng believes that the remaining debt is sustainable and the remaining balance is forecast to be repaid over the next three years,” Aveng said.

The issue will also provide Aveng the flexibility to complete its non-core asset sale programme and wind down its remaining exposure to discontinued businesses.

REUTERS

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