Sefalana Holdings Limited said on Friday it has successfully completed a rights issue with 100 percent of offer shares taken up by shareholders and their renounces. The Botswana Stock Exchange (BSE) listed diversified group earlier this year announced plans to raise additional cash from shareholders–part of the proceeds earmarked to aid entry into the Namibian market, where it has acquired a number of shops.
The company, headed by Chandra Chauhan, said in an announcement to the market that the successful rights issue raised approximately P255 million net of expenses, by way of a rights issue of 37,144,721 offer shares at P 6.95 per share.
“The offer shares were offered to shareholders on the register at the close of business on 9 May 2014 on the basis of 1 offer share for every 5 shares held and so in proportion for any greater number of shares held,” said Sefalana.
The Company also announced that 100 percent of the offer shares were taken up by shareholders and their renounces. Sefalana said the offer shares will be listed on the Botswana Stock Exchange on 24 June 2014. All shareholders with a shareholding of 0.25 percent or less in the company, who applied for shares in excess of their rights offer entitlement, were allocated their application for excess shares in full.
“This amounted to 1,164,445 shares. All remaining shareholders who applied for excess shares were allocated the remaining excess shares on a pro rata basis. This amounted to 2,954,546 shares,” said the Company.
Chauhan said earlier in the year that he hoped the multi million Pula transaction would speed up the group’s entry into the region as well as enable it to be a major player in that market in a relatively short space of time.
“We reported previously that following our detailed Group strategy review in early 2013, we were actively looking at entering into regional markets,” the company said in a statement accompanying the last financial results.
“We are pleased to notify our shareholders that we opened our first store outside Botswana in Katima Mulilo, Namibia in January 2014, and have entered into an agreement to purchase 12 additional stores across Namibia,” said Chauhan.