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Aveng intends to raise R300 million through rights offer

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Aveng has released a statement announcing its intention to raise R300 million through a fully co-underwritten renounceable rights offer of ordinary no par value shares.

Aveng released a statement on Tuesday, 26 January 2021, to announce its intention to raise R300 million. The statement revealed that the company aims to do so by way of a fully co-underwritten renounceable rights offer of up to 20 000 000 000 ordinary no par value shares in the company.

In explaining the purpose of the sale, the statement noted, “Following a multi-year journey, the Company will engage in the restructuring of its balance sheet which will allow the Aveng group (“Group”) to reset its capital structure, deleveraging its balance sheet by more than R1 billion, extending the Group’s maturity profile to three years, and simultaneously materially improving the Group’s South African liquidity pool.”

Aveng further stated, “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. Importantly, this transaction not only provides Aveng the capital structure flexibility to complete its non-core asset sale programme and to wind down its remaining exposure to discontinued businesses, but also sets the Group on a path to pursue its strategy around the Group’s core businesses, McConnell Dowell and Moolmans, which have returned to profitability and where Aveng sees further business improvement prospects and growth opportunities.”

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Sabelo Makhubo
[email protected]

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