| Tue 27 Mar 2012, 13:04 | | AET - Alert Steel Holdings Limited - Alert Steel plans rights offer to |
|
AET
AET
AET - Alert Steel Holdings Limited - Alert Steel plans rights offer to
accelerate restructuring, improve BEE rating
ALERT STEEL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/005144/06)
JSE code: AET
ISIN: ZAE000092847
("Alert Steel" or "group")
ALERT STEEL PLANS RIGHTS OFFER TO ACCELERATE RESTRUCTURING, IMPROVE BEE
RATING
Pretoria, 27 March 2012 - AltX-listed steel retailer Alert Steel said today
it plans to raise R120 million through a rights offer, which has been
partially underwritten for R102.5 million. At the same time, it intends to
introduce a significant BEE shareholder that will improve the group`s
empowerment credentials.
In terms of the rights offer, 4 285 714 286 new no par value ordinary shares
will be offered to ordinary shareholders at a subscription price of 2.8 cents
per rights offer share. The funds raised from the rights issue will be used
by Alert Steel to finalise its restructuring process, restructure its current
debt, settle the purchase consideration of various acquisitions, provide the
group with working capital and enhance its cash flow.
Alert Steel has entered into an agreement with certain of its major current
shareholders, who will partially underwrite the rights offer for R58.5
million, and its new BEE partner, Omphile Investments, a 100% black-owned
company with investments primarily in the mining industry, who will
underwrite the remaining R44 million.
Chief executive Johan du Toit said that subsequent to the rights offer, Alert
Steel will be 30% empowered in terms of the BEE codes. "This investment is of
great importance to us as it will help us in our future tenders for
government business and major corporate transactions," he said.
For further information call Johan du Toit, CEO Alert Steel, 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 advisor: QuestCo (Pty) Ltd
Date: 27/03/2012 13:04:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
