Photo by: Duane Daws
After announcing in December that it would undertake a R4.5-billion fully underwritten renounceable rights offer, ArcelorMittal South Africa (AMSA) said on Monday that the offer, which closed on January 15, was undersubscribed, with only 68.1% of the offered shares being taken up.
In respect of the 692.3-million rights offer shares offered to shareholders or their renouncees, a total of 471.6-million new AMSA shares, were applied for.
Excess applications of 48 377 were received, which would be allocated in full as per the applications.
ArcelorMittal Holdings had subscribed for its proportional entitlement of the rights offer of 342.13-million shares, amounting to some R2.2-billion and, pursuant to its underwriting obligation, would subscribe for a further 220.65-million new AMSA shares, amounting to around R1.4-billion of the rights offer.
Dematerialised shareholders that had subscribed for shares in the rights offer would have their accounts debited and updated with entitlements to the rights offer shares.
Accordingly, the company will issue 692.3-million new AMSA shares in terms of the rights offer, resulting in the total issued share capital of the company increasing to nearly 1.14-billion ordinary shares of no par value.