Texton Property Fund broad based bee transaction gains overwhelming approval

Posted On Thursday, 19 March 2015 14:56 Published by
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Texton Property Fund’s shareholders gave their overwhelming support to the broad based black economic empowerment deal which was announced in December last year.

Rob Kane

This transaction, together with the investment by P D Naidoo of PDNA Property Investments in May 2014, will result in a total black ownership of approximately 25% of Texton. The 100% vote in favour of the deal has boosted Texton Property Fund’s objective of having a meaningful, sustainable and commercially driven black economic empowerment shareholding at the listed level. Texton will fulfil and exceed its transformation and empowerment objectives and achieve a strong BEE rating.

Rob Kane, CEO of Texton, said, “selecting the right BEE partners has been a critical element of the deal.  We are very pleased that we have secured a strong consortium that is not only broad based in terms of gender and reach into rural communities, but also offers us expertise and extensive business networks in the property sector. We are very pleased that this transaction will materially benefit our existing shareholders.”

The sale of R443 million shares to the BEE parties will strengthen the Texton balance sheet. Said Kane, “importantly, the incoming cash will be immediately deployed into attractive acquisitions for the Fund. The networks and business acumen of our new partners have already contributed to our deal flow and been of significant assistance to the management team. The BEE Manco will work alongside ourselves to facilitate a close working relationship and improved deal flow.” 

The BEE Consortium’s shareholders comprise:  Zava, Jade and Ditikeni. Zava is a successful black owned, managed and controlled diversified investment company, founded by Romeo Makhubela and Patrick Ntshalintshali both of whom have extensive experience in asset management.  Makhubela commented, “The transaction is another positive step for transformation property sector.  The BEE parties are fully committed to contributing to the success of Texton in the future.” 

Jade, a hundred percent women controlled and managed investment holding company, founded by Bukelwa Bulo and Zola Ntwasa, has direct property investments as well as investments in property services companies. Ditikeni is an investment holding group with nineteen shareholders, all of which are non-profit organisations involved in rural poverty alleviation, feeding schemes and AIDS actions. Their work impacts directly and indirectly on the lives of over 2 million of South Africa’s poorest and most marginalised citizens at grassroots level.

The BEE partners will not be able to sell their shares in Texton or the Consortium for a period of six years from date of subscription.  In addition to their shares ranking pari passu and having voting rights, Romeo Makhubela will be appointed to both the Texton board and the Texton investment committee. Kane concluded, “the transaction structure has been designed to incentivise the BEE parties to add value to the Fund, by bringing assets to Texton, and to secure long term leases. In addition, there will be meaningful skills transfer and economic uplift. We look forward to a close and fruitful working relationship with our new partners.”

Last modified on Thursday, 19 March 2015 20:20

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