Weekly corporate finance activity by SA exchange-listed companies


Weekly corporate finance activity by SA exchange-listed companies

Published Date: 2020-06-26 | Source: DealMakers | Author: Marylou Greig

Weekly corporate finance activity by SA exchange-listed companies

Harmony Gold Mining completes placing in equity raise
The company has successfully placed 60,278,260 new ordinary shares with existing and new institutional investors at a price of R57.50 per share raising gross proceeds of R3,47 billion. The proceeds will be used to discharge the US$200 million consideration to acquire AngloGold Ashanti's South African assets - Mponeng mine and Mine Waste Solutions. The shares which were placed at a 5.4% discount to the closing price on June 24, 2020 representing an aggregate of c. 11.1% of the company's issued share capital before the placing.

Pepkor raises R1,9 billion in equity raise
The company has raised R1,9 billion in non pre-emptive placing of 172,500,000 new ordinary shares were issued at a price of R11.00 per share, a 6.2% discount to the pre-launch 30-day VWAP of R11.73 per share on June 23, 2020. The placement shares represent 4.95% of the company's issued ordinary share capital prior to the placement. The proceeds will be used to reduce Pepkor's current gearing level and to support securing of the business against current and future uncertainties.

City Lodge considers Rights Offer
City Lodge is considering an underwritten renounceable rights offer of R1,2 billion which will allow the company to repay corporate debt, provide for its obligation under the BEE funding arrangements and give the company sufficient working capital to fund the cash flow shortfall as a result of the impact of the national lockdown.

Visual International to issue shares
The company has entered into a share subscription agreement with Verityhurst, an investment holding company with investments in the forestry, transportation, education and agricultural sectors. In terms of the agreement Verityhurst will subscribe for 133,000,000 ordinary Visual shares for cash at R0.04 per share for a total consideration of R5,32 million. The funds, payable in two tranches will reflect as a loan to the company until such time as the JSE suspension is lifted and the subscription shares issued. Proceeds will be used to pay service providers, unwind the 2018 acquisition of a 31.2% stake in Mosegedi and to fund working capital requirements. The subscription agreement contains a resolutive condition providing for Verityhurst to enter into an agreement with RAL Trust for the acquisition of further shares to acquire control of Visual without further diluting minority shareholders.

Indequity repurchases shares
The company has repurchased 477,879 shares at an average purchase price of R7.00 per share with a total value of R3,4 million.

13 companies issued a profit warning announcements
The following companies issued profit warnings this week: Naspers, Prosus, Accelerate Property Fund, Motus, Hulamin, Mpact, Spanjaard, South Ocean, Hudaco Industries, Emira Property Fund, Super Group, CGS Holdings and AVI.

Six companies either issued, renewed or withdrew cautionaries
The following companies advised shareholders: CSG Holdings, Labat Africa, Tongaat Hulett, Allied Electronics, Purple Group and Accentuate.

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