RIGHTS OFFER
RAC takes up 18% of shares in Dawn
Investment holding company RECM & Calibre has underwritten the rights offer up to about R201m
Investment holding company RECM & Calibre (RAC) has taken up about 100-million shares in construction and building materials group Distribution and Warehousing Network’s (Dawn’s) renounceable rights offer of R358m at R1 a share. RAC had underwritten the rights offer, which closed on Friday, up to about R201m. Dawn shareholders took up 100-million shares and RAC took up the rest, giving it about 18% of the group. The offer’s ratio was about 147.8 rights offer shares for every 100 ordinary shares. Dawn said the total issued share capital of the company had risen to more than 600-million shares. "I think it’s a business going through a very tough time, but at R1 a share, it’s a good investment opportunity," RAC executive chairman Piet Viljoen said. RAC had been ready to take up the full R201m in shares, he said. Dawn had traded above R24 a share in late 2008 before the global financial crisis. The group has branches across SA and in some African countries including Mauritius. It made a...
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