AVENG LIMITED - Completion of rights offer and deb23 Mar 2021
Completion of rights offer and debt restructure and announcement of potential follow on renounceable rights offer

AVENG LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1944/018119/06)
ISIN: ZAE000111829
SHARE CODE: AEG
("Aveng" or "the Company")



COMPLETION OF RIGHTS OFFER AND DEBT RESTRUCTURE AND ANNOUNCEMENT OF
POTENTIAL FOLLOW ON RENOUNCEABLE RIGHTS OFFER

Aveng is pleased to report the successful conclusion of its rights offer and debt restructure
on Friday, 19 March 2021. This brings to a culmination the restructuring announced on 25
November 2020. This, combined with the recently released results for the six months ended
31 December 2020, and a growing order book provides Aveng with a new platform to pursue
its strategy around its core businesses, McConnell Dowell and Moolmans, that offer growth
opportunities while completing the delivery of its non-core asset sale program and wind
down its remaining exposure to discontinued businesses.
As part of the rights offer and debt restructuring:

    •   Shareholders demonstrated a much higher than anticipated interest in the rights
        offer resulting in the raising of R392m of new capital, with shareholders subscribing
        for R278m and the underwriters taking up their fees and their minimum required
        subscription;
    •   R232m of the proceeds on the rights offer was utilised to partially settle debt at a
        significant discount;
    •   Certain lenders subscribed for R396m of new equity at 5 cents per share (compared
        to the rights offer price of 1,5 cents per share) in a specific issue of shares for cash
        and the proceeds thereof was used to settle debt;
    •   The iNguza note debt was settled in full as part of the restructuring;
    •   The settlement of the debt resulted in a gain of R486m;
    •   Debt has reduced from R2,1 billion as reported at 31 December 2020 by R1,1 billion;
    •   A total of 37 955 034 249 new ordinary and 725 472 919 A shares were issued in
        terms of the rights offer and the various specific issues detailed in the Circular,
        bringing the total number of ordinary no par value shares and Class A shares in
        issue to 58 075 005 388; and
    •   The Company has R161m of additional liquidity.
The remaining debt owing to SA Lenders has been renegotiated and is repayable over a
three-year term at more favourable rates. Aveng believes that the remaining debt is
sustainable.
Following the greater than anticipated interest in the Rights Offer, certain existing
shareholders have indicated their willingness to provide further capital to support the
Company. This additional capital was not anticipated at the time of developing the
recapitalisation and balance sheet restructure plan when only limited capital was available,
in an uncertain market, with limited appetite. Such additional capital would provide the
Company with the opportunity to further solidify its balance sheet and provide the capital to
accelerate its business plan and explore identified growth opportunities which will provide
attractive returns, mainly in the Moolmans business.
The Board has therefore taken the decision to implement a follow on renounceable rights
offer of R100m at 1,5 cents per share (being the same price as the initial rights issue). The
rights offer is expected to be fully co-underwritten at no fee, by the Company’s two largest
shareholders, and will be subject to shareholder approval. A circular calling an Extraordinary
General Meeting and setting out further details of the rights issue will be sent to
shareholders in due course. The Board has noted that all Directors and Prescribed Officers
have indicated that they will follow their rights.


23 March 2021
Melrose Arch

Sponsor
UBS South Africa (Pty) Ltd

Edinah Mandizha
Company Secretary
Tel: 011 779 2800
Email: info@avenggroup.com

Date: 23-03-2021 12:19:00
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