Cairo - Mubasher: Orascom Development Holding (ODH) announced on Thursday the details of its planned rights issue.
The firm said earlier, it plans to raise new equity capital to strengthen its financial resources and to support the further financing of the real estate developments required to meet the minimum build obligations in Oman and Montenegro for 2016 and 2017.
The company will offer 11,866,779 new registered shares, at CHF 11.28 per share, said press statement.
The offer price will be below the nominal value and at a slight premium to the 30 day Volume Weighted Average Price "VWAP".
Following the rights issue, the company's capital will increase by CHF 133.8 million, before deducting transaction fees, noted the statement
The capital increase will come from gross cash proceeds of CHF 49.6 million and the conversion of a loan from the company's major shareholder of CHF 84.2 million into equity, while the remainder of the newly created share capital will be a mere reclassification of reserves into share capital in order to comply with Swiss Corporate Law restrictions.
ODH shareholders will receive one subscription right for every registered share they hold on 7 December 2015 (after market close). 12 Subscription rights will grant the holder the right to purchase 5 new shares against payment of the offer price, subject to certain restrictions applicable to the rights offering, including restrictions under relevant securities laws.
The subscription rights must be exercised between 8 December and 14 December, 12:00 noon CET.
Subscription rights which have not been validly exercised during the rights exercise period will expire without compensation.
The listing and first trading day of the new registered shares on SIX Swiss Exchange is expected to occur on 16 December 2015 and the delivery of the new registered shares against payment of the offer price on 17 December 2015.
As for holders of our Egyptian Depository Receipts (EDRs), they will be able to exercise the subscription rights relating to the shares underlying the EDRs through the central depositary for the EDRs, Misr for Clearing, Settlement, and Central Depository (MCSD), and subscription will be in EGP.
