Adrenna Property make a R1.30 per share cash offer before delisting
CAPE TOWN – Adrenna Property Group will make a R1.30 per share cash offer to shareholders ahead of its plan to delist, management said in a statement on Wednesday.
The R1.30 represents a 63.2 percent premium to the 30-day volume average traded price on the JSE up to June 25 and a 35.1 percent premium to the 30-day average of 96.25 cents per share up to August 15. The share price opened at R1 on Wednesday.
Adrenna’s management said they wish to delist because the company, which is focused on the investment and growth of income producing properties, has had no reason to resort to the market to raise funds since listing in January 1999, other than a vendor placement in June 1999.
Because it essentially held only a single asset, a commercial industrial complex in Goodwood, Western Cape, a listing was of no benefit to shareholders as it increased the administrative burden on the company and its executives.
A listing had also not enhanced the marketability of its shares or market image because of the company’s relatively small size, management said.
Furthermore, efforts to diversify in the past year to enhance shareholder wealth had been delayed by “onerous and costly compliance requirements associated with being a listed entity."
The company said it had received undertakings from shareholders holding 36.88 percent of the shares to approve the scheme, with shareholders holding more than 60 percent of the shares opting to retain their shares after the delisting.