Grit defends share purchases


Grit defends share purchases

Published Date: 2019-03-11 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Grit defends share purchases

The group says shares acquired by its Executive Share Trust from a vehicle jointly owned by its CEO were bought on an arm's length basis.

Grit Real Estate Income Group has defended the purchase of shares by the Grit Executive Share Trust from Bowwood and Main, a company jointly-owned by CEO Bronwyn Corbett and former chairman Sandile Nomvete.

The fund, previously called Mara Delta, is listed on the London, Johannesburg and Mauritian bourses. It invests in real estate across Africa outside SA, with a portfolio covering Botswana, Kenya, Mauritius, Morocco, Mozambique, Ghana and Zambia.

The shares were bought to meet the obligations of the company's long-term incentive plans scheme rules. It said it received approval for the acquisitions from the relevant stock exchanges and regulators and shareholders had also voted in favour of the special resolution at its annual general meeting in November 2017.

Between 28 February and 6 March, the Trust bought shares in the open market at market value, including shares sold by Bowwood and Main. It said these shares were acquired on an arm's length basis and were sold by Bowwood and Main as part of a restructure of its management shareholding in Grit. This is expected to ultimately result in Nomvete no longer holding any interest in Grit via the company.

Bowwood and Main subscribed for 5.75-million shares in Grit when it listed in July 2014, with Corbett and Nomvete indirectly owning about 2.87-million shares each. To date, the total shares sold by the company amount to 2.54-million shares, Grit said.

Grit's shares closed 0.05% lower at R19.49 on Friday.

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