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Johannesburg - Diversified aviation group 1time Holdings [JSE:1TM] said on Thursday that it had entered into a deal with black economic empowerment (BEE) partners, in addition to securing R65m in funding.
It said that it had agreed a deal with an empowerment consortium, including Mtha Aviation, SKMT Sunrise Investment Group and a new company incorporated as Oakleaf Investment Holdings.
Mtha and Sunrise will own 83% and 17% of Oakleaf, respectively.
"Oakleaf has been incorporated as an investment holding company, whose sole purpose will be to acquire and hold an equity stake in 1time," it said.
Oakleaf has subscribed for 70 million ordinary shares in the share capital of 1Time, subject to a maximum share price of 93 cents and a maximum aggregate price of R65.10m.
The specific issue will result in 25% of the issued share capital of the company being held by the BEE Consortium.
In order for the BEE Consortium to finance the specific issue, 1 000 preference shares in Oakleaf will be issued to the funder for a total consideration of R63.15m, which amounts to 97% of the funding required for the specific issue.
The remaining 3% of R1.95m will be contributed in cash by the shareholders of the BEE Consortium, 1time said.
"It has been the intention of the board of the directors of 1time to raise new equity capital to support its plans to expand its airline, aircraft maintenance and charter businesses, and to increase the group's BEE shareholding," it said.
