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CONSOLIDATED INFRASTRUCTURE GROUP LIMITED - Rights offer declaration announcement

Release Date: 04/12/2018 10:26
Code(s): CIL     PDF:  
Wrap Text
Rights offer declaration announcement

Consolidated Infrastructure Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/004935/06)
Share code: CIL
ISIN: ZAE000153888
(“CIG” or “the Company”)


NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES, AUSTRALIA, CANADA OR JAPAN. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM AN
OFFER OF SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION.

Unless otherwise defined, all capitalised terms have the same meanings as defined in the below mentioned announcements.

RIGHTS OFFER DECLARATION ANNOUNCEMENT

1      Introduction

CIG Shareholders are referred to the announcements released on SENS on:

       -   Friday, 18 May 2018, stating that the Company had entered into the Definitive Agreements with Fairfax Africa
           Investments Proprietary Limited (“FSA”) to give effect to the Proposed Transaction, comprising of the Upfront
           Loan, the Conversion Rights and the Rights Offer, in order to achieve CIG’s strategic objectives and strengthen
           its long-term capital structure;
       -   Monday, 30 July 2018, advising CIG Shareholders that the EGM Circular detailing the Proposed Transaction
           and incorporating the notice of General Meeting and Form of Proxy had been posted to CIG Shareholders;
       -   Wednesday, 29 August 2018, announcing the results of the General Meeting held to approve the Transaction
           Resolutions pertaining to the Proposed Transaction (the “Results of General Meeting Announcement”); and
       -   Thursday, 30 August 2018, advising, that the TRP had granted the TRP Waiver Ruling.

As per the Results of the General Meeting Announcement, all of the Transaction Resolutions required in order to give
effect to the Proposed Transaction, including the Rights Offer, were passed by the requisite majority of CIG
Shareholders.


2      Key terms of the Rights Offer

The key terms of the Rights Offer are as follows:


       -   The Rights Offer will be non-renounceable and neither over-allocations nor excess applications will be
           permitted.
       -   The Rights Offer Share allocation to each Qualifying CIG Shareholder will be allocated on a pro-rata basis
           according to the number of CIG Shares that it holds as at the Record Date.
       -   The Rights Offer Shares will be issued at the Rights Offer Price, being R4.00 per Rights Offer Share,
           representing a 4.5% premium to the 30 day VWAP prior to the Definitive Agreement Date.
       -   The Rights Offer is fully underwritten by FSA with an accompanying underwriting fee of 2.5% on the entire
           proceeds to be raised from the Rights Offer, being R800 million.
       -   Fairfax Africa has guaranteed the underwriting obligations of FSA in respect of the Rights Offer.

3     Rationale for the Rights Offer

CIG’s management team and Board believe that the capital received through the Rights Offer is important for CIG’s
strategy. The capital proceeds received will materially strengthen the Company’s balance sheet, to provide the required
headroom for CIG to deliver on its corporate strategy and manage the business optimally in an efficient and effective
manner with the aim of maximising the value created for CIG Shareholders and to protect the sustainability of CIG as
an enterprise.


4    Fractional entitlements

The number of Rights Offer Shares to which Qualifying CIG Shareholders will be determined on the basis that Qualifying
CIG Shareholders will be entitled to 1.01958098 Rights Offer Shares for every 1 CIG Share held on the Record Date.
CIG Shareholders’ entitlements will be rounded up or down, as appropriate in accordance with the standard rounding
convention with fractions of 0.5 and above being rounded up and fractions of less than 0.5 being rounded down, and
only whole numbers of Rights Offer Shares will be issued, in accordance with the JSE Limited Listings Requirements.

5    Salient dates and times of the Rights Offer

The proposed salient dates and times for the Rights Offer are set out below:


                                                                                                                        2018



 Publication and finalisation announcement on SENS and in the press                                     Thursday, 6 December

 Circular including Form of Instruction published on CIG website                                         Monday, 10 December

 Last day to trade in CIG Shares in order to participate in the Rights Offer                            Tuesday, 11 December

 CIG Shares commence trading ex entitlement at 09:00                                                  Wednesday, 12 December

 Nil paid letters of allocation listed and suspended from trading under code CILN and                 Wednesday, 12 December
 ISIN ZAE000262168

 Rights Offer Circular and Form of Instruction emailed/posted to Qualifying CIG                       Wednesday, 12 December
 Shareholders

 Record Date for participation in the Rights Offer                                                       Friday, 14 December

 Rights Offer opens at 09:00 on                                                                         Tuesday, 18 December

 In respect of Qualifying Dematerialised CIG Shareholders, CSDP or Broker                               Tuesday, 18 December
 accounts credited with Letters of Allocation at 09:00 on

 In respect of Qualifying Certificated CIG Shareholders, Letters of Allocation credited                 Tuesday, 18 December
 to an electronic account held with the Transfer Secretaries at 09:00 on

 Last day to trade to participate in the Rights Offer (no trading is permitted in the                   Tuesday, 18 December
 Form of Instruction in respect of Letters of Allocation which is issued for processing
 purposes only)

 Rights Offer closes                                                                                     Friday, 21 December

 Record date for take-up in terms of the Rights Offer                                                    Friday, 21 December

 Payment to be made by Qualifying Certificated CIG Shareholders by 12:00 on                              Friday, 21 December

 Listing of Rights Offer Shares at commencement of business on                                           Monday, 24 December

 In respect of Qualifying Dematerialised CIG Shareholders, CSDP or Broker                                Monday, 24 December
 accounts updated with Rights Offer Shares to the extent accepted and debited with
 the relevant costs at 09:00 on

 In respect of Qualifying Certificated CIG Shareholders, Rights Offer Shares updated                     Monday, 24 December
 with Rights Offer Shares and debited to an electronic account held with the Transfer
 Secretaries at 09:00 on
 Results of Rights Offer released on SENS                                                                Monday, 24 December

Notes:
1. Qualifying CIG Shareholders will be notified of any material amendments to the important dates and times on SENS and in the
   South African press.
2. All times indicated above are South African standard times.
3. CIG Share certificates in respect of CIG Shares may not be dematerialised or rematerialised between Wednesday, 12 December
   2018 and Friday, 14 December 2018, both days inclusive.


6    Documentation

The Rights Offer circular will be posted to CIG Shareholders on or about Wednesday, 12 December and will be made
available on CIG’s website (www.ciglimited.co.za/circulars) from Monday, 10 December 2018.


Johannesburg
4 December 2018


Financial adviser and transaction sponsor to CIG
Rand Merchant Bank (A division of FirstRand Bank Limited)


Legal adviser to CIG
ENS Africa

Restrictions

This announcement is restricted and is not for release, publication or distribution, in whole or in part, directly or indirectly,
in or into the United States, Australia, Canada, Japan or any other jurisdiction in which such release, publication or
distribution would be unlawful. This announcement is for information purposes only, does not purport to be full or
complete, is subject to change and shall not constitute or form part of an offer or solicitation of an offer to purchase or
subscribe for securities in the United States or any other jurisdiction. No reliance may be placed for any purpose on the
information contained in this announcement or its accuracy or completeness.

The Rights Offer Shares have not been and will not be registered under the United States Securities Act of 1933, as
amended (the "Securities Act"), and may not be offered or sold, directly or indirectly, in the United States, absent
registration or an exemption from, or transaction not subject to, the registration requirements of the Securities Act. There
will be no public offer of the Rights Offer Shares in the United States.

Neither this announcement nor the Rights Offer constitutes or is intended to constitute an offer to the public in South
Africa in terms of the South African Companies Act 71 of 2008 (as amended).

In member states of the European Economic Area (“EEA”) which have implemented the Prospectus Directive (each, a
“Relevant Member State”), this announcement and any offer if made subsequently is directed exclusively at persons who
are “qualified investors” within the meaning of the Prospectus Directive (“Qualified Investors”). For these purposes, the
expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including Directive
2010/73/EU, to the extent implemented in a Relevant Member State), and includes any relevant implementing measure
in the Relevant Member State.

In the United Kingdom this announcement is only being distributed to, and is only directed at, and any investment or
investment activity to which this announcement relates is available only to, and will be engaged in only with, Qualified
Investors who are (i) investment professionals falling with Article 19(5) of the UK Financial Services and Markets Act
2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of
the Order, or (iii) other persons to whom it may otherwise be lawfully communicated (all such persons together being
referred to as “relevant persons”). Persons who are not relevant persons should not take any action on the basis of this
announcement and should not act or rely on it.
This announcement has been issued by and is the sole responsibility of CIG. No representation or warranty, express or
implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by the advisers or
by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement
or any other written or oral information made available to or publicly available to any interested party or its advisers, and
any liability therefore is expressly disclaimed.

This announcement does not purport to identify or suggest the risks (direct or indirect) which may be associated with an
investment in the securities. Any investment decision to buy securities in the Rights Offer must be made solely on the
basis of publicly available information which has not been independently verified by Rand Merchant Bank (A division of
FirstRand Bank Limited).

Rand Merchant Bank (A division of FirstRand Bank Limited) is acting for CIG and no one else, in connection with the
Rights Offer and will not be responsible to anyone other than CIG for providing the protections offered to clients of the
advisers, nor for providing advice in relation to the Rights Offer.

Date: 04/12/2018 10:26:00 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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