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A FirstRand release around their refinancing of their empowerment dea

A FirstRand release around their refinancing of their empowerment deal was worth a read yesterday. From the release "In 2005 FirstRand facilitated the acquisition of 6.5% of its issued share capital (363.8 million FirstRand ordinary shares) by FRET as part of its BEE Transaction. Pursuant to the unbundling of Discovery Holdings Limited ("Discovery") by FirstRand in 2007, FRET became the holder of 20.4 million Discovery ordinary shares, in addition to the 363.8 million FirstRand ordinary shares it already held." OK, so we have some of the background, this is how the Refi is actually going to work. I know, an American term, I could not help myself:



"The Refinancing comprises the repayment of approximately R3,371 million of outstanding funding, the distribution of R200 million to BEE beneficiaries and the funding of transaction costs through:


- the raising of new senior funding of R1,537 million;


- the raising of new mezzanine funding of R444m ; and


- the realisation of R1,668m in proceeds from the disposal of 77,846,154 FirstRand shares and 4,415,294 Discovery shares."





So FirstRand are raising some serious funding and selling some assets. The truth is, markets have been tough, no getting around that.


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