SOV - Sovereign Food Investments Limited - Application of rights offer proceeds
SOV
SOV
SOV - Sovereign Food Investments Limited - Application of rights offer proceeds
SOVEREIGN FOOD INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
Registration Number 1995/003990/06
JSE Code: SOV
ISIN Number: ZAE000009221
("Sovereign" or "the Company")
APPLICATION OF RIGHTS OFFER PROCEEDS
Sovereign shareholders are referred to the announcement published by the Company
on SENS on Monday, 14 March 2011 wherein the results of the rights offer to
raise R150 million ("Rights Offer") were announced.
Subsequent to the successful completion of the Rights Offer, Sovereign utilised
the gross proceeds of R150 million from the Rights Offer to repay interest
bearing debt which should result in an additional cash flow saving of
approximately R4 million per month, comprising both interest and capital
repayments.
The reduction of interest bearing debt has furthermore allowed Sovereign`s
management ("Management") to extract further value from the Rights Offer process
arising from more beneficial lending terms and conditions.
Mike Davis, Sovereign`s Chief Executive Officer, said:
"We would like to thank Sovereign`s shareholders for their strong support of
this process and we aim to extract further value from the Rights Offer in the
future as a result of Sovereign`s improved operating position."
The information contained in this announcement has not been reviewed or reported
on by the Company`s auditors.
Port Elizabeth
24 March 2011
Corporate Advisor and Sponsor
One Capital
Date: 24/03/2011 17:26:00 Produced by the JSE SENS Department.
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