The Capital Markets Authority (CMA) has granted approval to TransCentury Plc (“TC”) to undertake a rights issue.
In a statement, the company says the rights will be issued on the basis of five (5) new ordinary shares for every one (1) existing share as approved in the last shareholder meeting.
“The CMA has granted approval to TransCentury Plc to undertake a rights issue. The rights will be issued on the basis of five new ordinary shares for every one existing share,” the company said in a statement.
“Funds from the rights issue will go towards supporting the last phase of TransCentury turnaround plan, recapitalizing our business, to reduce debt and unlock working capital for underlying businesses.”
In the approval, the Capital Markets Authority indicated it was satisfied that TC had provided adequate disclosures in the offer documentation that was submitted as required under the Fourth Schedule of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) 2002.
A rights issue is an offer given by a company to existing shareholders to buy a proportional number of additional shares at a given price, within a fixed period.
Rights are often transferable and a shareholder may sell them on the open market.
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