Published: 16 January 2014

African Sun CE Shingi Munyeza says the debt restructuring process will be complete before the end of the first half.

The group also expects to raise $6 million through a rights offer with the commitment to underwrite the rights offer already secured from major shareholders of the company.

The Group intends to reduce gearing from the current 51% to a long term target of 30%.

After the disposal of 12% in Dawn, gearing is expected to decline to 45%, and reduce further to 35% after the sale of the remaining 16.4% in Dawn Properties.

The decline of the short term debt is expected to boost earnings by saving an estimated $3 million in finance charges which the company has been paying over the last two financial years.
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