Jasco seeking R57.6 million in rights offer
Listed ICT firm Jasco Electronics Holdings is seeking to raise R57.6 million in new capital from existing shareholders by way of a renounceable rights offer.
Jasco said it would offer 72 million ordinary shares at 80 cents per share, amounting to R57.6 million.
In September, despite breaching the R1 billion revenue mark, the group reported a pre-tax loss of R93.5 million for the year ended June 2013.
“Jasco is entering the final year of its three-year restructuring programme and has made significant progress thus far, with the latest year being one of strong corrective action,” it said.
Jasco said its proposed rights offer was aimed at accelerating its organic growth strategies, while the group would also look to strength and improve the structure and efficiency of its balance sheet.
The company intends to use the proceeds of the rights offer to:
- Reduce the group’s bank account overdraft balances and continue to fund organic growth initiatives;
- and increase the balance sheet flexibility by diversifying and improving funding sources and ensuring additional borrowing capacity.
The rights offer is partially underwritten by Sasfin Bank Limited and Harvibase Investments to an amount of R45 million and an underwriting fee of R1 million will be payable to Sasfin.
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