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PPE
PPE
PPE - Purple Capital - Fully Underwritten Rights Offer
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000071411
("Purple Capital" or "the company")
FULLY UNDERWRITTEN RIGHTS OFFER
1. Introduction
Purple Capital currently owns significant stakes in and exercises
considerable influence over a number of well established, focused financial
services businesses which continue to do well financially, with impressive
growth prospects.
Purple Capital has total debt of approximately R108 million as a result of
funding the Global Trader acquisition (in part) and the growth of other
investments, Integer in particular.
The board of Purple Capital considers it appropriate to restructure the
funding of the group:
- to eliminate debt and strengthen its balance sheet;
- raise sufficient capital to fund existing operations into the foreseeable
future; and
- take advantage of current and future opportunities within its financial
services focus.
R120 million will be raised by way of a rights offer ("rights offer") of
convertible redeemable debentures ("convertible debentures") to shareholders
of Purple Capital, which will be listed on the JSE Securities Exchange South
Africa ("JSE").
The convertible debentures provide investors with a combination of:
- a high running yield; and
- attractively priced options to convert into equity in Purple Capital.
2. Underwriting
The issue of the convertible debentures has been fully underwritten by
Investec Bank Limited.
3. Salient features of the rights offer:
Principal Amount: R 119 608 202
Number of convertible 119 608 202 convertible
debentures to be issued: debentures of R1 each
Term: 3 years
Ratio of entitlement: 38 convertible debentures of
R1 each for every 100
ordinary shares held (on the
record date)
Coupon: JIBAR plus 1,8% payable
quarterly in arrears
Redemption: The convertible debentures
may be redeemed, at the
election of the holders,
either for:
100% of the Principal
Amount at the end of the
Term;
or
Purple Capital shares in
three equal tranches at any
time before the first,
second and third
anniversaries of the issue
of the convertible
debentures at conversion
prices of 60, 90 and 120
cents per share
respectively.
4. Conditions precedent
The rights offer is conditional upon, inter alia:
- the granting by the JSE of a listing of both the convertible debentures and
the letters of allocation;
- the registration by the Registrar of Companies of all documents required in
respect of the rights offer; and
- such regulatory and other approvals as may be required.
5. Further announcement
A further announcement setting out salient dates relating to the rights offer
will be published in due course.
Johannesburg
10 July 2008
Sponsor: KPMG Services (Pty) Ltd
Date: 10/07/2008 11:39:01 Produced by the JSE SENS Department.
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