JSE-listed Esor intends to raise up to R37.54-million in a rights offer to qualifying shareholders.
Qualifying shareholders are being offered the right to acquire 25 shares for every 100 Esor shares held on the record date. Some 98.8-million shares will be on offer at 38c apiece.
The proceeds will be used to repay a credit facility made available to Esor by Geomer Investments to fund the acquisition of Tuboseal Services.
Esor, in October, acquired a 100% interest in Tuboseal for R15-million, as well as the business assets and operations of Tuboseal for R18.25-million.
Esor has entered into an underwriting agreement with Geomer to fully underwrite the rights offer up to a maximum of R37.54-million.
The rights offer will be concluded in February.