International infrastructure and resources company Aveng intends to launch a further co-underwritten, renounceable rights offer to raise an additional R100-million from shareholders.
Aveng, however, requires the approval of its shareholders to proceed with the rights offer and will be convening an extraordinary general meeting on May 5.
The additional capital follows an initial R300-million rights offer last month, during which “certain shareholders of the company indicated a willingness to provide further capital to support the company”.
While such additional capital was not anticipated at the time of developing the balance sheet restructure transaction, Aveng said on April 6 that the additional capital would provide the company with an opportunity to further solidify its balance sheets, accelerate its business plan and fund identified growth opportunities that will provide “attractive” returns, mainly in the Moolmans business.