JOHANNESBURG (miningweekly.com) – Diversified miner Sentula has announced its intention to raise R105.58-million through a partially underwritten rights offer of 586.5-million shares.
This came amid discussions with its existing lenders with a view to concluding a debt restructuring agreement.
Sentula had entered into an underwriting agreement with JB Private Equity Investors Trust, which owned voting rights in relation to 19.78% of Sentula shares, in terms of which the latter would underwrite R10.44-million of the offer.
Expanding on the rationale of the offer, the company said on Thursday that it hoped the move would strengthen the balance sheet, restructure debt and
grow earnings.
“The offer, together with the debt restructuring, is expected to result in a sustainable long-term capital structure for the company, allowing for an improved capital structure and cash flows, which will provide stability to the group’s operations.
“It is also expected to achieve a normal debt maturity and interest rate profile, increasing profitability through the restructuring of underperforming operations and investment in performing operations,” said the group.