EOH shares took another dip on Thursday as the technology group revealed pricing details for its upcoming R500m rights offer.
“The rights issue and the resultant refinancing of the debt package as outlined will normalise the capital structure for EOH as promised to the market,” Van Coller said.The capital raise is the latest step by Van Coller to put EOH back on a robust growth path after revelations of underhand dealings between an employee and public sector officials that punched a R1bn hole in its balance sheet.
And that faith appears to be in place as EOH has secured underwriting agreements with Aeon Investment Management Proprietary Limited, Anchor Capital and Visio Capital Management to subscribe for any shares that have not been subscribed for by existing shareholders. The rights offer shares will be at a price of R1.30, representing a discount of about 30% to the theoretical ex-rights price being used by EOH. It says this is in line with the average discount of the last ten rights offers “of similar sized offerings relative to market capitalisations.”
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