Petra Diamonds to raise $178m selling shares to cut debt | Fin24
 
  • Mboweni on State Capture

    The new finance minister has described state capture as a 'great public sector heist'

  • Kganyago on Populism

    The central bank head says SA must learn economic lessons from Venezuela and Zimbabwe.

  • Up in the Air

    Uber Air could see SA shoppers flying to malls via skyports, says a company executive.

Loading...

Petra Diamonds to raise $178m selling shares to cut debt

May 25 2018 22:59
Thomas Biesheuvel, Bloomberg

LSE-listed Petra Diamonds plans to raise $178m (R2.2bn) from shareholders, as the gem miner seeks to cut a debt load that has seen it breach its banking terms.

Petra will sell shares at 40 pence each, which compares with Wednesday’s closing prices of 76 pence, and RBC Capital Markets and Barclays are running the sale, the company said in a statement on Thursday.

The stock slumped as much as 13%, the most since January.

It’s been a difficult 18 months for Petra, as the company redeveloped its flagship Cullinan mine, where the world’s biggest-ever diamond was found in 1905. It has battled with weak prices and a surging rand, while there have also been concerns from investors about the debt pile that the company has built up.

Petra has more than $600m (R7.4bn) of debt it accumulated by building a new plant and digging deeper at Cullinan.

Its lenders have waived covenants for December 2017 and relaxed them for upcoming June and December measurements, with the company now able to post a higher net debt-to-earnings ratio.

Petra has three other mines in South Africa and one in Tanzania. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

petra diamonds  |  diamonds  |  companies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2018

All eyes are on Tito Mboweni as he readies to deliver his maiden mini budget speech amid an ailing economy and eroded confidence.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

MiniBudget2018:

Previous results · Suggest a vote

Loading...