LONDON-listed Cambria Africa Plc says it has raised a total of £2,1 million (US$2,8 million) from an open offer of 191 million ordinary shares issued in May.
An open offer is a secondary market offering, similar to a rights issue. In an open offer a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price.
By Melody Chikono
The Zimbabwe-focussed investment holding company is seeking to raise £4,2 million pounds (US$5,5 million) for the purpose of acquiring new businesses and growing its already existing businesses in the country.
A total of £503 102,50 (US$663 369,32) was raised in cash from minority shareholders, while £1 595 000 (US$2 103 152,64) was raised through conversion of its loans into equity by Ventures Africa Limited (VAL). VAL is the controlling and majority shareholder of the company. Including VAL’s open offer participation, the aggregate participation ratio was 81%.
Of minority shareholders, 45% participated in the open offer. Excluding Consilium and funds under their management or influence, 60% of minorities participated in the open offer.
Cambria signed a deed of settlement with Consilium in October 2017. Applications under open offer entitlements totalled 190 288 648, being 145 000 000 from VAL.
A total 45 288 648 shares was from remaining shareholders, while 447 945 shares applications were received under the excess application facility.
Cambria’s operations comprise of Payserv Africa, provider of electronic data intelligence switching services, “pay slip” processing and payroll-based micro-finance loan processing and Millchem, a value-added chemicals distributor.
Cambria chief executive Samir Shasha said there was a vote of confidence on the company’s decision to invest in Zimbabwe.
“I spoke to many investors who participated in the Open Offer. Like myself, they were businesspeople and entrepreneurs for whom this investment is a significant part of their portfolio. This is a vote of confidence by my co-shareholders for Cambria Africa and most importantly our explicit strategy of investing in Zimbabwe.
“The Company is now holding over US$2,8 million cash following completion of the Open Offer and from operations, allowing us to identify and act on investment opportunities in Zimbabwe. Our balance sheet is stronger than it has been in a long time, with net equity per share up 64% at 0,85 cents per share debt down 71%,” he said.
Meanwhile, it is anticipated that trading in the shares issued under the open offer will commenced on Wednesday and following admission, the company will have
544 575 605 total shares in issue.
VAL will own 377 million ordinary shares in the company, representing 69,2% of the issued share capital of the company. Prior to the open offer, VAL owned 232 million ordinary shares (65,6%).