/ 26 June 1997

Nail announces R1bn rights offer

THURSDAY, 11.00AM

BLACK empowerment group New Africa Investments Limited on Wednesday announced a R1-billion rights issue to finance a further equity purchase in Metropolitan Life, and to recapitalise the African Merchant Bank, which is soon to be listed on the Johannesburg Stock Exchange.

Nail will also acquire part of SCS Communications’ 15,5% stake in cellphone netwotk MTN, which SBC has to sell since acquiring a strategic equity in telecoms parastatal Telkom, which in turn owns 50% of MTN rival Vodacom.

According to Nail MD Jonty Sandler, the group will also streamline its financial services assets to end the cross ownership structure between Metlife, African Bank and African Merchant Bank.

Meanwhile, Nail on Wednesday announced headline earnings for the six months to end March of R15,7-million, up 37% on the previous period’s R10,7-million, with earnings a share of 3,69c (2,69c).