Woolworths finalises R9.98bn rights offer

Johannesburg - Woolworths [JSE:WHL] has finalised the terms of a rights offer to raise nearly R10bn through 167.8 million new ordinary shares, the company said on Tuesday.

In a statement, Woolworths said a subscription price of R59.50 per rights offer share would apply at a ratio of 22 rights offer shares for every 100 ordinary shares held on September 12 2014.

READ: Woolworths plans R10bn rights offer

The subscription price amounts to a 20% discount on the theoretical ex-rights price of R74.38 for a Woolworths share as of Monday.

Woolworths would announce the results of the rights offer on September 29, the company added.

READ: Woolworths profit hit by David Jones costs

The food and clothing retailer said last week the rights offer would help repay financing for its A$2.2bn acquisition of David Jones, Australia's second-largest apparel retailer.

Woolworths shares were up 2.29% at R80.97 just before closing on Tuesday.

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