HEADLINE LOSS
Embattled Dawn in rights issue move
The struggling building materials specialist goes to market for R350m with majority of shareholders’ backing
Distribution and Warehousing Network (Dawn), the struggling building materials specialist, will raise R350m in a rights issue in an effort to reinforce a brittle balance sheet. The development comes little more than a week after Dawn warned shareholders it would report a 79c per share headline loss for the year to end March. On Wednesday, Dawn, now headed by former Hudaco CEO Stephen Connelly, said shareholders representing more than 60% of the issued share capital supported the proposed rights offer. That seems to suggest major shareholders — mobility conglomerate Imperial Holdings and large investment house Coronation Fund Managers — are supporting the rights issue. The price that the rights offer will be pitched at has not been disclosed, but there has been speculation it could be 200c per share. Dawn’s shares have been trading around the 250c level in recent weeks, close to the last stated tangible net asset value of around 250c per share. There was reference to a potential unde...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.