JSE-listed African Rainbow Capital (ARC) Investments has made a rights offer circular available on its website.
The company previously announced its intention to raise R750-million, less expenses of the rights offer of about R3.5-million, through a fully committed and underwritten pro rata nonrenounceable rights offer of ARC Investments ordinary shares.
Where applicable, the circular will be distributed to qualifying shareholders on September 28.
The company had also previously set out a manner of settling the outstanding fund management fee pursuant to the implementation of the rights offer.
Subsequent to the approval of the circular, the board of directors of ARC Investments has decided to cancel the set-off arrangement.
The ARC Fund will therefore settle the fund management fee from internal cash resources.
The purpose of the rights offer will therefore solely be to raise additional capital for ARC Investments to invest in the ARC Fund for use in its existing portfolio companies and for future acquisition opportunities.