Property development group Pinnacle Point has announced on Thursday that it has signed an agreement with its major shareholder, Trilinear Empowerment Trust, in terms of which Trilinear will subscribe for 1.3 million new shares at an issue price of 1 cent per share.

The shares will then be offered to Pinnacle shareholders by way of a claw back offer at an offer price of one cent per share each in the ratio of 18.54197 new Pinnacle ordinary share for every 100 Pinnacle ordinary shares held.

Trilinear will subscribe for the claw back shares for a placement consideration of R13 million.

The share certificate will be held in trust by the company's attorneys until the JSE authorise the release of the share certificate for the purpose of the claw back offer.

Trilinear's shareholding in Pinnacle will then increase from 48.4% to approximately 56.5%.

The remaining conditions precedent for the above-mentioned agreement include the Securities Regulation Panel exemption of Trilinear from having to make a mandatory offer, and shareholder approval to waive the mandatory offer by Trilinear.

The proceeds of the subscription for claw back shares will be used for working capital and development expenditure.