Underwriter Riskowitz takes large bite of Taste
Less than 14% of fast food franchising group Taste Holdings’ rights offer shares were subscribed for, allowing underwriter Riskowitz Value Fund to acquire 86.16% of the new shares.The Southern African franchiser of Starbucks and Domino’s Pizza said on Monday that it had succeeded in raising its target of R398m by issuing 442-million new shares at 90c each.Existing shareholders were given the right to buy 96 new shares for every 100 held, but the details of the offer announced on December 19 indicated the deal was aimed at allowing Riskowitz to raise its stake in Taste.At 90c per share, the rights issue was priced at a premium to the share’s 71c price on December 19. Rights issues tend to be priced at a discount to the prevailing share price when companies want existing shareholders to buy the new shares. A price above the prevailing market price indicates the underwriter wants to buy the bulk of the new shares.At August 31, Taste had 457-million shares in issue. The rights issue saw...
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