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CIG to fund acquisition through capital raise

28th October 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JSE-listed Consolidated Infrastructure Group (CIG) aims to raise R750-million through an offer of 38.8-million rights offer shares at R19.30 apiece to fund the acquisition of the entire issued share capital of metering solutions provider Conlog.

The acquisition comprises three elements, including R700-million payable on the closing of the proposed transaction; a R50-million deferred payment payable on or about March 31, 2017; and, to should earnings before interest, taxes, depreciation and amortisation (Ebitda) exceed R150-million, for each additional R1 of Ebitda, R5 will be added to the purchase price for an additional payment of up to R100-million.

The rights offer issue price represents a 19.75% discount on the October 27 closing share price.

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Edited by Samantha Herbst
Creamer Media Deputy Editor

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