Messina Limited - Announcement regarding the propo
Messina Limited
(Registration number 1950/035912/06)
(Share code: MES ISIN: ZAE 000004438)
("Messina" or "the company")
Announcement regarding the proposed rights offer and further cautionary
announcement
Proposed rights offer
Further to the cautionary announcement dated 10 June 2003, the board of
directors of Messina has resolved to raise R311 million by way of a rights offer
("the rights offer") of ordinary shares in Messina, at a price of R50 per share.
The proceeds from the rights offer will be used by Messina to reduce its
unsecured debt obligations to a subsidiary of SouthernEra Resources Limited
("SouthernEra"), the holding company of Messina. As at 30 June 2003 these debt
obligations amounted to approximately R313 million. SouthernEra advanced these
funds to Messina to finance the construction and development of the Messina
Platinum Project.
SouthernEra has agreed in principle to underwrite the full value of the rights
offer. The proposed rights offer is conditional upon:
(i) the JSE Securities Exchange South Africa approving the necessary
documentation and granting the required listing of the new shares and letters of
allocation to be issued pursuant to the rights offer;
(ii) the Registrar of Companies registering the rights offer documents;
(iii)approval by the South African Reserve Bank; and
(iv) signature of an underwriting agreement by SouthernEra.
Further announcement
An announcement setting out the detailed terms of the rights offer will be
published on or about Friday, 8 August 2003. Accordingly, Messina shareholders
are advised to continue to exercise caution until this announcement is made.
Rosebank
22 July 2003
Merchant bank and sponsor
RAND MERCHANT BANK
A division of FirstRand Bank
Limited
CORPORATE FINANCE
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