Pretoria - Distribution and Warehousing Network (Dawn), the listed manufacturer and distributor of plumbing and hardware brands, is to proceed with its rights offer to raise about R350 million.This follows Dawn shareholders approving the necessary resolutions at a general meeting of the company.
The company said on Monday that it planned to offer 350million rights offer shares at R1 a share in the ration of 147.83904 rights offer shares for every 100 existing Dawn ordinary shares held March 24, the record date for the rights offer.
The rights offer issue price represents a 53.1percent discount to the closing price on March 10.
The rights offer is aimed at assisting the company to achieve and implement its turnaround strategies, increase the available working capital facilities and repay R75 million of its revolving credit facility.
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It said the gross proceeds of the rights offer would strengthen the company’s balance sheet and provide the company with a sustainable platform for its ongoing operations.
The rights offer is fully committed with Coronation Asset Management undertaking to follow its rights for about R100 million and Ukhamba Holdings for about R49 million and Dawn entering into an underwriting agreement with RECM and Calibre to underwrite the balance of the rights offer up to a maximum amount of R201 million.
The rights offer will open on March 27 and close at noon on April 7. The results of the rights offer will be announced on April 10.