African Sun seeks to raise US$10 million

DIRECTORS of African Sun are proposing to recapitalise the group through a rights offer to raise approximately US$10 million.

This exercise aims to raise funds for refurbishment of existing hotels as well as funding regional expansion.
“The major shareholders have committed to follow their rights in full. Zimbabwe Allied Banking Group has agreed to underwrite the rights offer,” African Sun said in a notice to shareholders.
“In terms of the rights offer, 125 223 168 shares in the issued share capital of African Sun will be offered to existing holders of ordinary shares, registered as such at the close of business on Friday November 13 2009, for subscription in cash at a price of $0,08 each payable in full on acceptance, on the basis of 10 new ordinary shares for every 56 shares held at the Record Date,” the group said.
The rights offer shares will be listed on the Zimbabwe Stock Exchange from Friday, December 11 2009.
The group also proposed a private placement of US$15 million. The hotel group however did not indicate conditions for its proposed US$15 million debt-capital.
The hotel and leisure group would have 831 472 907 issued and fully paid for ordinary shares from the current 706 249 739 ordinary shares after the extraordinary general meeting to be held next week.
After the EGM African Sun will have a total of 668 527 093 authorised ordinary but unissued ordinary shares from 793 750 261 shares. — Staff Writer.

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