The Woolworths rights announcement came yesterday. I was a bit shocked at the deep discounted price, I was not expecting that. Having said that, the company raises the same amount of money, if you do not follow your rights here you will be diluted. So, you must follow your rights, we will deal with all of our clients separately. If you are not a client of Vestact and want to be, it is simple enough, email us!
OK, that aside, here is the nitty gritty. 22 shares per 100 that you hold now at a price of 59.5 Rand. The current price is above 80 Rand a share, closing at 80.78 last evening. You can quickly see action must be taken! Citi Global Markets, JP Morgan Securities and Standard Bank are underwriting the rights offer, in other words they will take up the shares that nobody else wants.
Dates? Those are important. The last date to trade to qualify is this Friday. The shares will trade ex the rights on Monday. In other words, if you buy them on Monday, you cannot qualify for the rights. The offer opens on Monday the 15th of September and closes on Friday the 26th of September, the same day that the payment is due to be lodged. The market will be made aware of the rights issue on the 30th of September and the shares will be allocated to the respective shareholders on the 1st of October. Simple enough? I suppose. We will be in touch with clients who own the shares.