Sefalana Holdings Company Limited has revealed plans to raise capital in an announcement it made to shareholders last week ÔÇô a move that it is expected to give it the war chest as it enters the Namibian market through an acquisition of existing stores.?The Botswana Stock Exchange (BSE) listed diversified group was expected to fund its deal to purchase 12 stores owned by Metro Namibia (Metro Cash and Carry Namibia) through a rights issue.?The company released a notice to its shareholders that it is raising approximately P 255 million, net of expenses, by way of a rights issue of 37,144,693 Offer Shares.??”The Offer Shares are being offered by way of a Rights Issue to shareholders on the register at the close of business on Friday 9 May 2014 on the following basis and as otherwise set out herein: for every 5 shares held: 1 offer share and so in proportion for any greater number of shares held,” it said.?
Sefalana said any allocation of Offer Shares that would result in fractional entitlements will be dealt with in the following manner: if the fraction is less than one-half of an Offer Share it will be rounded down to the nearest whole number; and if the fraction is equal to or greater than one-half of an Offer Share, it will be rounded up to the nearest whole number.?”The Major Shareholders of Sefalana have agreed to sign irrevocable undertakings to subscribe for any excess shares that have not been subscribed for by way of the Rights Issue, therefore the issue will be fully subscribed,” the company added.?Already, application to the Botswana Stock Exchange has been made to list the renounceable letters of allocation and the subsequent Offer Shares.?
Sefalana recently said a deal to acquire the stores will be delayed, but raising the money will allow the company to use part of the proceeds to complete the deal that is expected to raise Botswana’s flag in the continent.?”We reported previously that following our detailed Group strategy review in early 2013, we were actively looking at entering into regional markets. We are pleased to notify our shareholders that we have 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,” the company said recently.