Business / Companies
Brainworks in $35 million capital raise
30 Mar 2015 at 07:23hrs | Views
Local investment holding firm Brainworks Capital Management has 'successfully' raised $35 million following the closure of a capital raise last week.
The proceeds will be used to strengthen various company investments, which include Dawn Properties and African Sun, and to pursue investment into the telecoms sector in spite of the withdrawal of the offer to purchase a stake in Telecel Zimbabwe.
The rights offer was underwritten by major foreign shareholders Red Rock Capital and Blue Air Capital.
The offer opened on March 2 and closed on March 23. According to the company's circular on the capitalisation exercise, Brainworks will seek to obtain control of African Sun by making an additional purchase of shares and effectively hold more than 51 percent of the issued share capital.
The acquisition will cost approximately $3,5 million. About $7,4 million will be used to buy out minorities in Lengrah Investments, the special purpose vehicle holding shares in African Sun and Dawn Properties including Stewart Cranswick.
The purchase of the shares will be completed on May 31, 2015. Lengrah Investments holds about 43 percent in Dawn and a similar stake in African Sun.
Brainworks is required by Zimbabwe Stock Exchange rules to make an offer to minorities in the companies as they have exceeded the mandatory 35 percent shareholding.
The proceeds will be used to strengthen various company investments, which include Dawn Properties and African Sun, and to pursue investment into the telecoms sector in spite of the withdrawal of the offer to purchase a stake in Telecel Zimbabwe.
The rights offer was underwritten by major foreign shareholders Red Rock Capital and Blue Air Capital.
The offer opened on March 2 and closed on March 23. According to the company's circular on the capitalisation exercise, Brainworks will seek to obtain control of African Sun by making an additional purchase of shares and effectively hold more than 51 percent of the issued share capital.
The acquisition will cost approximately $3,5 million. About $7,4 million will be used to buy out minorities in Lengrah Investments, the special purpose vehicle holding shares in African Sun and Dawn Properties including Stewart Cranswick.
The purchase of the shares will be completed on May 31, 2015. Lengrah Investments holds about 43 percent in Dawn and a similar stake in African Sun.
Brainworks is required by Zimbabwe Stock Exchange rules to make an offer to minorities in the companies as they have exceeded the mandatory 35 percent shareholding.
Source - The Herald
