Limited take-up of Texton offer


Limited take-up of Texton offer


Published Date: 2021-01-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

Limited take-up of Texton offer

The property fund says investors holding less than 2 percent of its shares tendered them to a mandatory offer.

Texton Property Fund says investors holding just 1.84% shares took up an offer to buy them out at R1.20 per share. The offer was made in October after a consortium of investors acquired a further 8% of the fund's shares, taking its shareholding to 40% and triggering a mandatory offer under JSE rules.

The real estate investment trust, which owns properties in SA and the UK, said shareholders tendered 6.42-million shares in the offer to Oak Tech Properties and other investors, increasing the consortium's stake to 42.35%. The R1.20 per share was a 54% premium to Texton's closing share price of 78c on 29 October, the day before the offer was made, and 43% higher than the 30-day volume weighted average price of its shares. However, since then its share price has risen sharply. At the time of the offer, Texton said as a small cap, illiquid stock with limited institutional support and access to equity capital, operating in an extremely volatile equity and commercial environment, the consortium believed the offer would give shareholders an opportunity to exit their investment.

It said it would benefit from the support of the Consortium as key anchor shareholders and that it was not their current intention to delist the fund from the JSE.

Separately, it announced yesterday that Chevron Investments, its UK subsidiary, had agreed to sell its Poundland property in the UK to Maven Property for £3.7 million. The sale is in line with its disposal strategy of recycling non-core assets and strengthening its balance sheet. The proceeds would be used to reduce debt in the UK, with its loan-to-value ratio improving to 43.5% from 44.6%.

Earlier this month, Texton said it had entered a deal to sell its DHL Bawtry distribution warehouse in Doncaster in the UK for £22.7 million. Due to the size of the disposal, it will require shareholder approval.

Its shares fell 2% to R1.94 in light trade yesterday.


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