Datacentrix has announced an issue of shares for cash which will raise R18.88 million and see empowerment partner Eglin Investments (New CNI) take a controlling stake.
The issue of 20.98 million shares at 90c each represents a premium of 0.2c on the weighted average traded price of Datacentrix shares on the JSE during the 30 business days before 19 November 2001, the date on which the board approved the issue.
The group`s shareholders, who approved the issue, have waived the requirement for a mandatory offer to be made to the minority shareholders by New CNI, which will own 49% of the company.
"The cash issue was approved and recommended by the board of directors in order to enhance the company`s empowerment credentials and secure New CNI as the company`s strategic empowerment partner," the company says.
The cash raised will be used to, among other things, fund organic growth and cyclical working capital requirements and future acquisitive growth.
Of the cash, about R7 million will be used for early settlement of suppliers` accounts to benefit from settlement discounts.
About R11.9 million will be placed on call at an after-tax interest rate of 5.6% a year.
The company adds that it is confident that its results for the year to end-February will meet its expectations.
The new shares were listed on the JSE this morning. The share price was unchanged at 90c by late morning.
Share
