Shareholder support for M&R rights offer

Stanlib Asset Management, Old Mutual Investment Group, Sanlam Investment Management and Coronation Asset Management have given their support to construction group Murray & Roberts' proposed rights offer.

They said on Monday that they have each irrevocably committed to subscribe for rights offer shares on behalf of their clients that hold not less than 49 546 206 Murray & Roberts shares in aggregate - or approximately 14.93% of M&R's shares.

Earlier this month, M&R set out the final terms of its R2 billion renounceable rights offer, which opened at 9am on Monday.

The group plans to issue 112.8 million shares as part of its rights offer as it aims to bolster its liquidity in the short to medium term to withstand current uncertain global economic and financial markets.

The subscription price is at 35.09% discount to the closing price of its shares on March 7 2012, which was R27.73. At 10am on Monday on the JSE, Murray & Roberts share price stood at R28.13, down 37 cents, or 1.3%.