Brett Childs, the chief executive of Brainworks, at the listing of the company on JSE. Photo: Supplied
Brett Childs, the chief executive of Brainworks, at the listing of the company on JSE. Photo: Supplied

Brainworks raises R61.28m on completing rights offer

By Sandile Mchunu Time of article published Sep 25, 2019

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DURBAN - Diversified investment holding company Brainworks has managed to raise R61.28 million after it completed its rights offer with 71.42percent of the shares snapped up by its investors.

The group, however, fell short of the R85.80m it said it wanted to raise as announced at the end of August.

The group initially offered 13.20million new ordinary Brainworks shares recorded in the share register at the close of business on September 6, at a rights offer issue price of R6.50 in the ratio of 1 rights offer share for every 6.70691 Brainworks ordinary shares held on the record date.

In the end, about 9.43 million rights offer shares were taken by the investors.

The rights offer, which closed on Friday, represented a discount of approximately 19percent to the closing price of Brainworks shares on the JSE on August 26, the day prior to the release of this rights offer declaration and finalisation announcement on Sens.

The group said the purpose of the rights offer was part of a broader capital restructuring of the company to extinguish materially all third party debt.

“The rights offer closed at 12 noon on Friday, September 20, and the board of directors of Brainworks is pleased to announce that 71.42percent of the rights offer shares were subscribed for,” the group said.

Brainworks is based in Mauritius but has major investments in Zimbabwean hospitality, leisure and real estate sectors.

Last year the group decided to dispose of its financial services section to focus on hospitality, leisure and real estate.

The group exited its financial services segment, GetSure Life Assurance, in June last year.

It said it planned to restructure the company by reducing its financial services component, focusing on leisure and real estate sectors through seeking investment opportunities in the supply chain to these sectors.

In the year to end December, Brainworks reported a 35percent increase in revenue to $79.3m and revenue growth was recorded across all the group's segments.

Hospitality and real estate segments were major contributors to the revenue, with hospitality contributing 86percent of the group's revenue.

The real estate segment increased its revenue to $7.1m during the period, up from $2.2m compared to 2017.

Brainworks shares closed unchanged at R7.97 on the JSE on Monday.


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