Plan to raise R350m from rights issue

Dawn chief executive Stephen Connelly presents the interim results at the Wanderers Club in Johannesburg. Photo: Nicholas Rama

Dawn chief executive Stephen Connelly presents the interim results at the Wanderers Club in Johannesburg. Photo: Nicholas Rama

Published Jan 26, 2017

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Johannesburg - Distribution and Warehousing Network (Dawn) said on Wednesday that it intended to raise about R350 million in gross proceeds through a rights issue.The company said it had agreed terms with a potential underwriter and expected the proposed rights issue to be fully underwritten.

“In addition, the company has received undertakings of support for the proposed rights issue from shareholders representing in excess of 60 percent of Dawn’s issued share capital,” the company said.

The company last week said its board was considering various initiatives to, among others, strengthen its balance sheet “to allow for the alignment of its capital structure to its business model and current environment”.

Read also:  Dawn scales down to endure tough environment

It said it would post a circular to shareholders on February 2 to convene a shareholders' extraordinary general meeting to approve the necessary resolutions required to implement the proposed rights offer in early March.

Dawn’s share price closed 6.18percent lower at R2.48 a share on the JSE.

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