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2024-01-09 9:13 AM

Texton Property Fund Successfully Raises R85 Million in Rights Offer

  • Successful Rights Offer: Texton Property Fund raises R85 million, with a high subscription rate of 94%.
  • Director Confidence: Key directors, including MJA Golding and RA Franco, show confidence by subscribing to substantial shares.
  • Shareholder Benefits: Qualifying shareholders will see their CSDP or Broker accounts credited with Rights Offer Shares on January 8, 2024.
By Lethabo Ntsoane

Texton Property Fund Limited, a company recently granted REIT status by the JSE, has announced the successful closure of its Rights Offer, raising a total of R85 million. The Rights Offer, as detailed in the Declaration Announcement released on December 6, 2023, saw significant participation from shareholders.

Rights Offer Results

The Rights Offer, which concluded on January 5, 2024, has resulted in a total of 38,636,364 Rights Offer Shares being made available, with an impressive subscription rate of 94%. The table below provides a breakdown of the Rights Offer results:

DetailsAmountPercentage
Rights Offer Shares available38,636,364100%
Rights Offer Shares subscribed for36,378,03094%
Rights Offer Shares to Underwriters*2,258,3346%
Total Rights Offer Shares issued38,636,364100%

*Note: Allocation of Rights Offer Shares to Underwriters will be announced separately.

Crediting of Rights Offer Shares

Qualifying Shareholders holding Dematerialized Shares who exercised their Rights can expect their CSDP or Broker accounts to be credited with Rights Offer Shares. This process will occur on January 8, 2024, and any payments due will be debited accordingly.

Directors’ Dealings

In accordance with the Rights Offer Circular, several directors or their associates opted to follow their Rights, demonstrating confidence in the company’s future. The transactions took place on January 5, 2024, and include the following:

MJA Golding

  • Number of Securities: 7,721,725
  • Price per Share: R2.20
  • Total Transaction Value: R16,987,795
  • Nature of Director’s Interest: Indirect beneficial
  • Clearance Obtained: Yes

RA Franco

  • Number of Securities: 17,802,911
  • Price per Share: R2.20
  • Total Transaction Value: R39,166,404.20
  • Nature of Director’s Interest: Indirect beneficial
  • Clearance Obtained: Yes

JR Macey

  • Number of Securities: 6,240
  • Price per Share: R2.20
  • Total Transaction Value: R13,728
  • Nature of Director’s Interest: Indirect beneficial
  • Clearance Obtained: Yes

The directors’ actions indicate a strong belief in Texton’s future prospects.

Conclusion

Texton Property Fund Limited’s successful Rights Offer, raising R85 million, underscores the confidence shareholders have in the company’s strategic direction. With the Rights Offer Shares set to be credited to qualifying shareholders on January 8, 2024, and the positive response from directors, Texton looks well-positioned for continued growth in the South African real estate market.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo