Pick n Pay has announced the launch of a rights offer aimed at raising R4 billion to alleviate its increasing debt. In a statement issued this morning via the Stock Exchange News Service (SENS), the retailer confirmed it has secured all necessary approvals for the rights offer.
With the terms finalized and all conditions precedent met, the offer is now unconditional. The rights offer is fully underwritten by Absa, Rand Merchant Bank, and Standard Bank.
The offer will involve 252,206,809 renounceable rights to subscribe for new Pick n Pay ordinary shares. Shareholders will receive 51.11 rights offer shares for every 100 ordinary shares held, excluding those in restricted jurisdictions as specified in the forthcoming Rights Offer Circular. The record date for the Rights Offer is 19 July 2024. For shareholders with less than 100 ordinary shares, a proportionate number of rights offer shares will be provided. The subscription price is set at 1,586.0 cents per rights offer share.
This price represents a discount of approximately 32.48% compared to the theoretical ex-rights price, calculated using the closing price of R27.39 per share on Wednesday, 10 July 2024. The rights offer shares will constitute about 33.8% of Pick n Pay’s share capital post-offer.
Key dates and times for the rights offer remain unchanged from those announced on SENS on Tuesday, 9 July 2024. Pick n Pay cautioned shareholders about the risks involved in acquiring the letters of allocation and the rights offer shares, advising them to review all relevant risks and legal requirements.
Decisions regarding participation in the rights offer should be based on the information provided in the rights offer circular, which will be issued around 15 July 2024. Shareholders can begin trading the letters of allocation from 09:00 on Wednesday, 17 July 2024, until the close of business on Tuesday, 30 July 2024. Trading of the rights offer shares will commence from 09:00 on Wednesday, 31 July 2024.
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