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AET - Alert Steel Holdings Limited - Alert Steel plans rights offer to

Release Date: 27/03/2012 13:04
Code(s): AET
Wrap Text

AET - Alert Steel Holdings Limited - Alert Steel plans rights offer to accelerate restructuring, improve BEE rating ALERT STEEL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2003/005144/06) JSE code: AET ISIN: ZAE000092847 ("Alert Steel" or "group") ALERT STEEL PLANS RIGHTS OFFER TO ACCELERATE RESTRUCTURING, IMPROVE BEE RATING Pretoria, 27 March 2012 - AltX-listed steel retailer Alert Steel said today it plans to raise R120 million through a rights offer, which has been partially underwritten for R102.5 million. At the same time, it intends to introduce a significant BEE shareholder that will improve the group`s empowerment credentials. In terms of the rights offer, 4 285 714 286 new no par value ordinary shares will be offered to ordinary shareholders at a subscription price of 2.8 cents per rights offer share. The funds raised from the rights issue will be used by Alert Steel to finalise its restructuring process, restructure its current debt, settle the purchase consideration of various acquisitions, provide the group with working capital and enhance its cash flow. Alert Steel has entered into an agreement with certain of its major current shareholders, who will partially underwrite the rights offer for R58.5 million, and its new BEE partner, Omphile Investments, a 100% black-owned company with investments primarily in the mining industry, who will underwrite the remaining R44 million. Chief executive Johan du Toit said that subsequent to the rights offer, Alert Steel will be 30% empowered in terms of the BEE codes. "This investment is of great importance to us as it will help us in our future tenders for government business and major corporate transactions," he said. For further information call Johan du Toit, CEO Alert Steel, on 082 416 8888 Issued by du Plessis Associates on behalf of Alert Steel Holdings Limited. dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile: 082 330 2034 or e-mail: alertsteel@dpapr.com website: www.alertsteel.co.za Designated advisor: QuestCo (Pty) Ltd Date: 27/03/2012 13:04:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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