Vukile Property Fund Limited announced a significant secondary placement of shares by Encha Properties. This move will see Encha Properties, a black economic empowerment (BEE) investor, sell its entire shareholding in Vukile.
Background
Encha Properties decided to pay down its loan and security agreement with Investec Bank Limited. This decision follows discussions with their funders at Investec. As a result, Encha Properties launched a secondary placement of 52,881,466 ordinary shares in Vukile on July 10, 2024.
The Placement
The placement shares were priced at R15.50 per share. This price represents a 0.8% discount to Vukile’s pre-launch 30-day volume-weighted average price as of market close on July 10, 2024. Investec acted as the sole bookrunner for the placement.
Key Figures of the Transaction
| Date of Transaction | Trade Date | Number of Shares | Total Value (R) | Highest Price (R) | Lowest Price (R) | Weighted Average Price (R) |
|---|---|---|---|---|---|---|
| July 10, 2024 | July 11, 2024 | 52,881,466 | 819,662,723 | 16.50 | 16.02 | 16.29 |
Impact on Encha Properties
Following this placement, Encha Properties will no longer be a shareholder in Vukile. Vukile expressed its gratitude to Encha Properties for their partnership over the past 11 years.
Director’s Interest
Dr. Sedise Moseneke, a non-executive director of Vukile, is associated with Encha Properties. The nature of his interest in this transaction is indirect and beneficial. Clearance to deal in these securities was received prior to the transaction.
Settlement
The settlement of this secondary placement is expected to occur on July 16, 2024.
Conclusion
Vukile Property Fund Limited has made a significant announcement about the secondary placement of shares by Encha Properties. This move marks the end of Encha Properties’ shareholding in Vukile, closing an 11-year partnership. The transaction highlights Vukile’s ongoing efforts to manage its financial commitments and strategic relationships.