If it is not a rights issue the ordinary shareholders will be losing out as there is no incentive for them to buy more shares????. Also ..according to what I have read, they plan to issue a huge number of ordinary shares because they want to raise about R2.5 billion..
so logic dictates that the more shares to be issued the less monetary value per share ..less shares issued the more the monetary value seeked per share to cover that debt.
I cannot see how they are going to entice the ordinary man in the street to buy their shares . A big chunk of it ( new investment) will have to come from existing shareholders. That is why it could well be a rights offer??