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Johannesburg - Civil engineering and construction group Esorfranki [JSE:ESR] on Thursday reiterated its proposed rights offer to raise approximately R200m for expansion and the settlement of debt.
The group proposed an issue price of 215 cents per share.
"The main purpose of the rights offer is to raise capital in order to expand the operations of the company as considered appropriate by the board of directors and to settle debt of approximately R175m," it said.
The group said that underwriting agreements had been entered into with Coronation Asset Management, Sanlam Investment Management - a division of Sanlam Life Insurance - and Sanlam Investment Management.
An aggregate underwriting fee of 1.9% of the rights offer proceeds is payable to the underwriters, Esorfranki said.
"Pursuant to the content of this announcement, the cautionary announcement is withdrawn," the group said.
