South African Starbucks representative Taste Holdings is asking shareholders for another refill.
South African Starbucks representative Taste Holdings is asking shareholders for another refill.
Image: Bloomberg/Qilai Shen

The Southern African representative of Starbucks Coffee and Domino's Pizza is asking its shareholders for yet another refill.

Taste Holdings's share price fell 18.75% to 13c on Wednesday morning after it announced yet another rights issue, hoping to raise R132m by getting its investors to subscribe for 146 rights offer shares at 10c each for every 100 shares they hold.

The latest rights offer of 1.32-billion shares will more than double Taste's existing shares in issue. This number currently stands at 901.5-million and will jump to 2.2-billion.

Wednesday's announcement marked Taste's fourth request to shareholders for additional funds in three years.

In December 2017, Taste Holdings raised R398m by issuing 442-million shares at 90c. That rights offer came just six months after a “claw-back offer” in June 2017 in which the fast-food franchiser raised R120m by issuing 80-million new shares at R1.50 each.

In October 2015, Taste raised R226m via a rights offer of 75-million new shares at R3 each, shortly after it acquired the rights to represent Starbucks in Southern Africa for 25 years.

Image: Iress

The group has been attempting to raise funds for its food division by selling its jewellery division which owns chains NWJ, Arthur Kaplan and World's Finest Watches.

It acquired the Arthur Kaplan chain in 2014 for R85m. In April 2017 it announced it hoped to settle R225m of debt by selling its jewellery shops.

“Having initiated a process for the sale of the luxury goods division the company has concluded that it is not the opportune time to execute such a sale. This is due to the current prevailing macro-economic environment and generally tough retail trading conditions,” it said in September 2017.

In November, Taste reported a net loss of R83m for the six months to end-August.

laingr@businesslive.co.za