Delta offloads Grit stake ahead of delisting


Delta offloads Grit stake ahead of delisting

Published Date: 2020-07-27 | Source: Stephen Gunnion | Author: Stephen Gunnion

Delta offloads Grit stake ahead of delisting

Grit is consolidating its three listings into two, which it says will save on costs and boost trading in London and Mauritius.

Delta Property Fund has sold 2.5 million shares in Grit Real Estate Income Group ahead of its delisting, scheduled for Wednesday.

The fund owns 17.4 million shares in the pan-African real estate company, which said on Friday that its delisting had become unconditional. Grit is also listed in London and Mauritius and removing itself from the JSE, where it barely trades, would save on listing costs while boosting liquidity in the other markets. Last month's delisting proposal was accompanied by an offer from Botswana Development Corporation and East African reinsurance company ZEP-RE acquire up to 7 million shares for R14.90 each, a 14.4% premium to the 30-day volume-weighted average price Grit's shares traded at up to the day before the initial announcement.

Delita will receive R37.3 million for the sale of the stake, which will reduce its shareholding in Grit to 4.7% from 5.5%. It will use the proceeds to reduce debt.

Grit's local shareholders had the option of remaining invested and transferring their existing shares to either the London or Mauritian share registers, Shareholders who did not accept the offer or choose to switch their shares to the London or Mauritius registers before the date of delisting would have their shareholding transferred to Mauritius, it said in June.

Delta's shares rose 5.7% to 37c on Friday. Grit's shares were suspended at R14.86 ahead of the delisting.

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