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Johannesburg - African Bank Investments [JSE:ABL] is considering issuing a tranche of variable-rate, perpetual, non-cumulative, non-participating preference shares to investors for cash by way of a private placement. The shares will rank on a pari passu basis with Abil's existing listed preference shares, the company said on Friday.
"Abil wishes to raise cost effective permanent share capital as part of a general capital management programme. It is intended that capital raised through the issue of preference shares will be applied towards the subscription by Abil of ordinary shares in its wholly owned subsidiary, African Bank Limited," it said.
Placements of preference shares would be made by Absa Capital and Investec Capital Markets through a joint bookbuilding process, in terms of which investors would be invited to participate in the proposed issue.
The minimum subscription amount per principal institutional investor would be R100 000 and the minimum subscription amount per principal non-institutional investor would be R1m, Abil added.
The new tranche of preference shares would be priced at a clean price of 7 916c per preference share, which results in an effective yield of 87.2% of prime.
The offer period begins on July 15 and closes on July 19, and allotment and settlement will take place on Tuesday, 26 July. After including accrued dividends the issue price for settlement on 26th July 2011 will be 7 975c, it said.
"Abil wishes to raise cost effective permanent share capital as part of a general capital management programme. It is intended that capital raised through the issue of preference shares will be applied towards the subscription by Abil of ordinary shares in its wholly owned subsidiary, African Bank Limited," it said.
Placements of preference shares would be made by Absa Capital and Investec Capital Markets through a joint bookbuilding process, in terms of which investors would be invited to participate in the proposed issue.
The minimum subscription amount per principal institutional investor would be R100 000 and the minimum subscription amount per principal non-institutional investor would be R1m, Abil added.
The new tranche of preference shares would be priced at a clean price of 7 916c per preference share, which results in an effective yield of 87.2% of prime.
The offer period begins on July 15 and closes on July 19, and allotment and settlement will take place on Tuesday, 26 July. After including accrued dividends the issue price for settlement on 26th July 2011 will be 7 975c, it said.
