KWV rights issue a success
2009-10-15
KWV HOLDINGS recently embarked on a rights issue in order to strengthen the company’s balance sheet after the unbundling of the indirect Distell interest to its shareholders. The offer expired on 9 October and rights were offered at R6,23 per right. Shareholders had the opportunity to take up 54 rights for every 100 shares held in KWV Holdings at the launch date of the offer. The share price currently trades at about R8. The offer was well supported and KWV raised R150 million through the rights issue. This will support the company in its growth objectives. A total of 83% of KWV Holdings shareholders followed their rights during the offer. The rights offer was underwritten by two of KWV’s main shareholders, Zeder and VinPro (pro rata to their existing shareholding). As a result, Zeder took up additional rights at just more than R20 million (in addition to nearly R40 million in following their rights) and now has a total shareholding of 31,1% in KWV. VinPro took up rights at about R5,5 million. Says KWV CEO, Thys Loubser: “We are very encouraged by the high number of shareholders who supported the rights issue. This is a clear indication that they believe in the future potential of KWV, a vote of confidence in the new, focused KWV.”
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