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Johannesburg – Diversified supplier of opencast mining services, bulk earthworks and construction materials Buildmax [JSE:BDM] said on Wednesday that its board had resolved to proceed with a rights offer of R300m.
It follows a rights offer announcement by Buildmax in May of R150m, to strengthen the group's balance sheet by further reducing interest-bearing debt, fund working capital and potentially provide equity for medium term capital expenditure for its Mining Services business unit.
Brait IV, a 24.8% shareholder in Buildmax, had offered to underwrite up to R150m of the original rights offer.
"Shareholders are advised that having regard to Buildmax's current and future capital requirements and in light of the levels of interest expressed by potential underwriters, the board has resolved to proceed with a rights offer of R300m," Buildmax said.
The group said that a committee of independent directors were in the process of finalising the terms of the proposed underwriting with Brait and other potential underwriters.
"Accordingly shareholders are advised to continue to exercise caution when dealing in their Buildmax securities," the group concluded.
- I-Net Bridge
It follows a rights offer announcement by Buildmax in May of R150m, to strengthen the group's balance sheet by further reducing interest-bearing debt, fund working capital and potentially provide equity for medium term capital expenditure for its Mining Services business unit.
Brait IV, a 24.8% shareholder in Buildmax, had offered to underwrite up to R150m of the original rights offer.
"Shareholders are advised that having regard to Buildmax's current and future capital requirements and in light of the levels of interest expressed by potential underwriters, the board has resolved to proceed with a rights offer of R300m," Buildmax said.
The group said that a committee of independent directors were in the process of finalising the terms of the proposed underwriting with Brait and other potential underwriters.
"Accordingly shareholders are advised to continue to exercise caution when dealing in their Buildmax securities," the group concluded.
- I-Net Bridge
