Metrofile gets green light for share issue

By Nicola Mawson for Metrofile

Johannesburg, 10 Oct 2006

Metrofile Holdings` shareholders have agreed to increase its share capital, allowing it to raise cash, it says.

The company aims to clear debt through the rights issue and will then buy out the rest of its only material asset, Metrofile, which it does not already own.

In September, Metrofile said as soon as it had completed the R142 million rights offer, it would acquire the 35% of the storage company that it does not own. However, its black economic empowerment status will not be affected, as the partners would have a stake at holding level instead of a share at operational level.

The company`s share capital will increase from R600 000 to R3.1 million through the creation of 400 million new shares with a par value of 0.6146c each.

Shareholders also agreed that the company could place 188.9 million shares under the control of the company`s directors so that they can be issued at a later stage if need be.