Roy Cokayne
TEXTON has agreed to sell a maximum of 20 percent of the listed property firm’s shares to a black economic empowerment (BEE) consortium in a transaction valued at R443.5 million.
This transaction, together with the investment by PDNA Property Investments in May that led to 6.2 percent of Texton’s shares being owned by black empowered individuals or entities, would result in Texton increasing its black ownership to about 25 percent.
Texton shares on the JSE closed 0.84 percent higher on Friday at R9.60. The company was previously named the Vunani Property Investment Fund.
Rob Kane, Texton’s chief executive, said on Friday that they were committed to the country’s transformation and empowerment objectives, and believed this transaction would contribute to transformation in the property sector.
Texton’s board has recommended the transaction to shareholders, who would vote on it at a special general meeting in March.
The transaction will become effective in March after the fulfilment of a number of conditions precedent, including the finalisation of all agreements and Texton board, shareholder and JSE approval.
The BEE consortium is led by Zava African Capital, which holds 60 percent of the consortium’s share capital, with the balance held by Jade Capital Partners (30 percent) and Ditikeni Investment Company (10 percent).
The transaction would be achieved through the issue of R443m new Texton shares to the consortium, which has secured funding from the Public Investment Corporation.
Zava is a black-owned, managed and controlled diversified investment company, which has skills and experience in public sector investment.
Its founders and shareholders are Romeo Makhubela and Patrick Ntshalintshali, who both have experience in asset management.
Jade is a wholly-owned, black women-controlled and managed investment holding company with a primary focus on investment in the property sector that was founded by Bukelwa Bulo and Zola Ntwasa.
Ditikeni Investment Company is an investment holding group that has 18 non-profit organisation shareholders that serve black communities at the grassroots level.
The BEE partners will not be permitted to sell their shares in Texton or the consortium for a period of six years from the date of subscription.
In addition to their shares having equal rights with existing shares and having voting rights, the consortium will be entitled to nominate a director to the Texton board, who will also become a member of the Texton investment committee.
Kane said the subscription would be used to take advantage of acquisitions currently in progress valued at more than R500m.
He said it was a strategic imperative for Texton to achieve meaningful, sustainable and commercially driven black ownership at listed company level
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Texton has significant interest in office sector property.