FIFTH RIGHTS ISSUE
Taste plans to raise more than its market capitalisation
Taste Holdings, the fast-food franchising group that holds the local rights to global brands such as Starbucks and Domino’s, will raise more than its market capitalisation when embarking on its fifth rights issue in slightly more than three years. On Thursday, Taste detailed proposals for a rights issue to raise R398m — underwritten by US-based Riskowitz Value Fund, which is already a large shareholder in Taste. The rights offer will be pitched at 90c/share — a 14% premium to Taste’s closing share price on Wednesday. The rights issue proposal will mean that Taste has raised about R1bn of new capital in the market in less than four years. The amount to be raised in the latest rights issue is more than the company’s market capitalisation of about R353m. The company, which listed in 2006 with a small private placement of R22.5m, also raised R180m in August 2014, R95m in April 2015, R226m in late 2015 and R120m in May. The possibility of a sizeable rights offer was signalled earlier in ...
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