AST shareholders have agreed to a rights offer aimed at repaying the troubled group`s debt.
The group announced in May that it had secured a R60 million loan from a group of stakeholders and that most of its interest-bearing debt would be rescheduled as part of a comprehensive plan for the recapitalisation of AST, which would include an underwritten rights offer.
It said at the time that the underwriters had conditionally agreed to underwrite the rights offer in a maximum amount of R88.75 million.
Shareholders yesterday voted in favour of allowing the company to issue shares to outside parties and to increase the authorised share capital by R200 000 through the creation of two billion additional shares.
They also voted to place about 1.33 billion authorised but unissued shares under the control of AST`s directors for the purpose of implementing the rights offer.
AST`s shares will be consolidated on a one-for-10 basis after the rights offer has been completed.
The offer is expected to take place in October.
AST`s share was trading at 16c on the JSE this morning, down 1c from yesterday`s close.
Related stories:
AST secures R60m loan
Share