AST has announced the terms of its rights offer, aimed at raising R88.75 million before expenses, which it plans to use to reduce debt.
The rights offer is being underwritten by Kumba Resources, the Iscor Pension Fund, Standard Bank and Cadtech.
"The underwriting of the rights offer may, should existing AST shareholders not follow their rights, result in the underwriters collectively owning more than 35% of the share capital of the company," AST says.
Given AST`s current financial position, the Securities Regulation Panel has ruled that in the event of that occurring, the underwriters will not be obliged to make a mandatory offer to minority shareholders.
AST is to offer 986 111 111 shares at 9c each, with shareholders being entitled to 142.85549 rights shares for every 100 AST shares held.
The offer will open on 15 September and close on 3 October.
The AST board has also resolved to consolidate the group`s shares on a one-for-10 basis. The share price was unchanged at 11c on the JSE this morning.
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