City Lodge proposes R1.2bn rights offer
Covid-19 has hit revenue, though some hotels remained open for quarantined individuals, stranded tourists and essential service workers
Hotels group City Lodge is planning a R1.2bn rights offer, equivalent to its market capitalisation, as it battles cash flow difficulties due to the Covid-19 pandemic.
The group said it wanted to raise cash to meet its black empowerment obligations, repay corporate debt and help with a cash shortfall as a result of the coronavirus pandemic. The rights offer would also position the company for future growth, it said...