Company Comment
Taste's rights offer a little unpalatable
Taste has already made clear the arduous task in turning its Dominos pizza and Starbucks coffee franchises to profit
Investors appear to be finding prospects for Taste Holdings – which has just completed its second rights offer in little over a year - a little unpalatable. On Monday the results of the rights issue to raise R132m by the issuing of 1.32-billion shares at 10c/share were released…and accompanying statistics made plain the lack of market appetite. Only around 240-million shares were subscribed for – representing around 18% of the full offer. This is a little better than last year when only 14% of shareholders opted to follow their rights at 90c/share in a R398m fund raiser - perhaps indicating some optimism that Taste cannot possibly trade much lower than these bombed out levels. But what this meant is that the offer underwriters - Riskowitz Value Fund (RVF), Rand Group LLC and Eldon Capital Management – took up over a billion new Taste shares. RVF – which carried the bulk of the underwriting responsibility – is associated with US-based investor Sean Riskowitz. Riskowitz aligned vehicl...
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