Can someone please explain : Terms of the rights offer are that shareholders will be offered two shares for every one held at a price of R2.41 requiring an outlay of R4.82 per share held if they do not wish to be diluted.
Although a shock, this is old news. Refer to SENS 07/04 AND 15/04. They are issuing shares to cover approx 58% of the $300mil convertible bonds due next year. Some pertinent points from the rights offer is "976,206,906 new common shares to be issued", "A$0.25, 14 pence, or ZAR 2.41 per Rights Issue Shares(depending upon the register on which the shareholder holds its common shares)" and "Ratio in which the securities will be offered- 2 Rights Issue Shares for every 1 fully paid common share held". A final decision will be taken on 15May as I understand it.Typical of AQP management, they are being pro-active in dealing with the debt issue now rather than wait till next year although there is still a further $128mil bonds too deal with and I don't quite understand why they made the rights offer so cheap. Either way, as Simon says. when the NIL's get issued act right away. I hope this helps.
As I understand it FEK, for every one share you hold, you will be offered a furthr 2 shares. So, if you follow your rights, you will end up with 3 shares i.e R4.82 + (what you paid for the 1 share lets say R7.50) i.a.w. R4.11 each.