Faritec Holdings Limited, a leading black empowerment ICT company in South Africa, is raising an additional ZAR20 million in capital to ensure long term sustainability of the business.
The company, listed on the Johannesburg Stock Exchange (JSE), says the capital injection will provide a secure and sustainable platform for future operations. The deal comes in the form of a rights offer to Faritec shareholders underwritten by the company’s board of directors.
Says Faritec CEO, Simon Tomlinson: “The rights offer represents a considerable vote of confidence by Faritec’s major shareholders and management in the future of the company and in its ability to continue operating successfully in extremely difficult trading conditions, not just for the company itself but in the IT sector and the economy as a whole,”
The net result of the offer will see Faritec shareholders being offered 77.64 shares for every 100 shares held on the record date for participation, at a subscription rate of ZAR0.10 per rights offer share. A ZAR15 million bridging loan has been secured to smooth the transition period.