| Fri 26 Aug 2011, 13:50 | | AET - Alert Steel Holdings Limited - Alert Steel to raise R50 million |
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AET
AET
AET - Alert Steel Holdings Limited - Alert Steel to raise R50 million
through rights offer
ALERT STEEL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/005144/06)
JSE code: AET ISIN: ZAE000092847
("Alert" or "the company")
ALERT STEEL TO RAISE R50 MILLION THROUGH RIGHTS OFFER
Johannesburg, 26 August 2011 - AltX listed steel retailer Alert Steel
proposes to raise up to R50 million by way of a partially underwritten
rights offer.
Alert Steel announced in March that it is to be restructured and
recapitalised under new leadership in order to return the company to long-
term stability and sustainable profitability by refocusing on its core
business of retailing steel and steel related products and services.
In terms of the offer announced today, 1 515 151 515 new ordinary shares
will be offered to shareholders at a price of 3.3 cents per rights offer
share in the ratio of 591.79 rights offer shares for every 100 Alert shares
held. The rights offer price represents a discount of 80.59% to the 30 day
volume weighted average price of Alert Steel ordinary shares as at 19 April
2011.
The rights offer has been partially underwritten in an amount of R36.3
million, and the parties who have agreed to underwrite the offer are Capital
Africa Steel, the WF and JC Family Trust, Carlmac Steel, Cannistraro
Investments 219, Giyatri Paper, Andrew Charles Brookstein, Richard Maynard
and Owen Vernon Jevon.
Chief executive Johan du Toit says that the rights offer and the agreement
to restructure the company`s overdraft with Nedbank were required to
strengthen the company`s balance sheet and to refinance the business of the
company.
For further information call Johan du Toit on 082 416 8888
Issued by du Plessis Associates on behalf of Alert Steel Holdings Limited.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547,
Mobile: 082 330 2034 or e-mail: alertsteel@dpapr.com
website: www.alertsteel.co.za
Designated Adviser
Vunani Corporate Finance
Date: 26/08/2011 13:50:01 Produced by the JSE SENS Department.
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