SpiceI2I: Proposal for rights issue and acquisition of Affinity Grp has been approved with 88% voting in favour. Minority shareholders have been displeased due to another rights issue so soon after the previous one ended in Aug…
Other points of contention were 1) the heavily disc issue price at 5.5c compared to the last traded 11.5c, 2)the acq price of US$175m for Affinity Grp (net book value at US$29.5m) and 3) what the excess funds raised would be used for…
Co is expected to proceed with more acquisitions in the future to realize its “Circle of Champions” vision. Current P/E is at 20.5x but counter has fallen 47.8% after declaration of the acq and rights issue.
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