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Remgro to raise R9.9bn as Johann Rupert mulls Distell deal

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Johannesburg - Remgro [JSE:REM] plans to raise more than R9.9bn ($739m) from shareholders as the company controlled by South African billionaire Johann Rupert considers deals including a right to buy SABMiller [JSE:SAB] stake in drinks maker Distell Group [JSE:DST].

The company plans to raise the funds through a rights offer and the sale of B shares, it said in a statement after the market closed in Johannesburg on Tuesday. Investors will be entitled to 10 shares for every 100 they own at a price of R192.50 each under the terms of the rights issue. That’s a discount of 21% to Tuesday’s closing price of R241.72.

The investment group has first refusal on SABMiller’s 26% holding in the maker of Amarula liqueur and Klipdrift brandy, valued at about R9.5bn. The brewer was told to sell the asset by antitrust authorities as a condition to winning South African approval for its takeover by Anheuser-Busch InBev [JSE:ABI]. Remgro already owns almost 53% of Distell.

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