SOUTH Africa’s diversified motor dealership and retail group McCarthy Retail Ltd said it had obtained shareholders’ approval to raise R870-million through a rights offer. About 67% of shareholders representing total shares in issue voted in favour of the offer, the group said in a statement. The rights offer had been underwritten by a consortium of McCarthy’s debt funders and covered ordinary and convertible preference shares, it added. ”The rights offer will place McCarthy on a sound financial footing and enable it to return to its roots, namely motor retailing,” said chairman Noel Phillips. In April the group unveiled a capital restructuring plan to raise the R900-million through the rights offer to reduce debt and said it also planned to convert a R210-million loan to its subsidiary Retail Apparel Group into shares. Since 1997, McCarthy Retail’s capital base has been substantially eroded as the company grappled with significant bad debt write-offs in its furniture, clothing and building supplies units. – Reuters