Weekly corporate finance activity by SA exchange-listed companies


Weekly corporate finance activity by SA exchange-listed companies

Published Date: 2020-05-29 | Source: DealMakers | Author: Marylou Greig

Weekly corporate finance activity by SA exchange-listed companies

PSG unbundles stake in Capitec
The company has advised it intends to distribute 32,502,856 Capitec shares comprising 28.11% of the total issued share capital of Capitec to PSG Group shareholders by way of a pro rata distribution in Specie in the ratio of 14 Capitec shares for every 100 PSG Group shares held. The attributable value of each Capitec share (based on the Capitec 30-Day VWAP on April 28, 2020) is R125.48. PSG will retain a 4.3% shareholding in Capitec post the unbundling which will be held by wholly-owned subsidiary PSG Financial Services. These shares comprise a 2.6% shareholding not included in the unbundling and a 1.7% stake which PSG Financial Services will receive in terms of the unbundling. The rational for the transaction is to assist in the reduction of the discount at which PSG Group Shares trade to the Company's sum-of-the-parts (SOTP). The PSG Group 30-day VWAP on 28 April 2020 amounted to R131.40 compared with the SOTP value of R203.11 per PSG Group Share, representing a discount of R71.71, or 35.3% per PSG Group Share.

Brimstone reduces stake in Equites Property Fund
Brimstone has successfully disposed of a 3.41% stake in Equites Property Fund via an accelerated bookbuild. The 20,937,931 shares which represent 60% of Brimstone's holding in Equites, were sold at R15.35 per share (a 5.07% discount to the 30-day VWAP) for a total of R321,4 million. The decision to undertake the partial disposal follows a strategic review of its investment portfolio and the ability to dispose of assets at acceptable valuations without jeopardising the company's long-term strategy.

Results of Equites Property Fund's scrip distribution alternative
The company has issued 16,682,158 new ordinary shares in terms of its scrip distribution alternative resulting in a capitalisation of distributable retained profits of R255,58 million.

Middle East Diamond Resources proposes Rights offer
The company has decided to undertake a partially underwritten rights offer of R20 million in order to raise cash to prepare the outstanding financial statements and pay long outstanding creditors. Prior to the rights offer, the company will restructure its authorised and issued share capital through a share consolidation on a 1: 100 basis. The authorised share capital will also be increased. Further details will released in due course.

Stellar Capital Partners repurchases shares
The company has repurchased 48,778,576 shares in a price range of R0.68 and R0.71 per share with a total value of R34,15 million.

Quilter repurchases shares
The company has repurchased 1,274,381 shares at a price of R27.53 per share with a total value of R35,08 million.

RH Bophelo to list on the RSE
The company is to take a secondary listing on the Rwanda Stock Exchange on June 1, 2020. The primary listing and exchange will remain as the JSE. The purpose of the RSE listing is to diversify the company's investor base and to facilitate it's 'A' ordinary shares availability to the wider East African public. The listing is being done by way of an introduction and as a result no capital will be raised on the RSE on the day of listing.

12 companies issued a profit warning announcements
The following companies issued profit warnings this week: Sasol, Tsogo Sun Gaming, Hulisani, Murray & Roberts, Vunani, Nampak, Truworths International, Absa, Finbond, Bell Equipment, Alexander Forbes and Old Mutual.

Seven companies either issued, renewed or withdrew cautionaries
The following company advised shareholders: Sasol, Unicorn Capital Partners, Sasfin, Datatec, PSV Holdings, Phumelela Gaming and Leisure and PSG Group.

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