Distribution and Warehousing Network (Dawn) has sold the 51% equity shareholding in Swan Plastics held by subsidiary Dawn Consolidated Holdings (DCH) to minority shareholders Michael Swanson, Phillip Cotterill and Desmond Robins. The maker of industrial, sanitaryware and kitchen products said it would use the proceeds for working capital, and reducing its interest burden and associated gearing. The effective date of the sale, which does not require shareholder approval, will be announced when it arises. The crises in SA’s mining and construction industries and, more recently, agriculture have put pressure on Dawn. Swan Plastics is involved in the manufacture of PVC products and water waste systems. The purchase price for the shares and claims is R35m in cash. The bulk is payable within seven days of signing the sale agreement, with another R5m due by April 3 2018. Interest will be charged at the prime rate. "In terms of the agreements entered into at the time of DCH’s investment in ...
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