BDM - Buildmax Limited - Update on rights offer and further cautionary
BDM
BDM
BDM - Buildmax Limited - Update on rights offer and further cautionary
announcement
Buildmax Limited ("Buildmax" or "the group")
(Registration no. 1995/012209/06)
Share Code BDM
ISIN code ZAE000011250
UPDATE ON RIGHTS OFFER AND FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the Buildmax results announcement dated 24 May 2010
in which they were advised that:
- the board of directors had resolved to raise not less than R150 million
through a rights offer in order to strengthen the group`s balance sheet by
further reducing interest-bearing debt, fund working capital and
potentially provide equity for medium term capital expenditure for the
group`s Mining Services business unit ("rights offer");
- Brait IV ("Brait"), a 24,8% shareholder in Buildmax, had offered, subject
to the fulfilment of certain conditions and on terms to be agreed, to
underwrite up to R150 million of the rights offer ("Brait offer"); and
- given Brait`s existing shareholding in Buildmax and their representation on
the board of Buildmax, the board of directors had constituted a committee
of independent directors to further consider the Brait offer and finalise
the terms of the rights offer.
Shareholders are advised that having regard to Buildmax`s current and future
capital requirements and in light of the levels of interest expressed by
potential underwriters, the board has resolved to proceed with a rights offer of
R300 million.
The committee of independent directors is in the process of finalising the terms
of the rights offer as well as the terms of the proposed underwriting with Brait
and the other potential underwriters. A more detailed announcement will follow
in due course. Accordingly shareholders are advised to continue to exercise
caution when dealing in their Buildmax securities.
7 July 2010
Sponsor
Java Capital
Date: 07/07/2010 14:52:01 Produced by the JSE SENS Department.
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