Encha Properties, Vukile Property Fund’s black economic empowerment investor, has sold its entire shareholding in Vukile in a secondary placement transaction valued at R819.66m.
Encha Properties Equity Investments announced in May it had agreed to certain amendments to its loan and security arrangements with Investec Bank, and would dispose of Vukile shares to meet certain capital and interest commitments.
Encha Properties informed Vukile that after discussions with Investec, it had made the decision to pay down the amount owing under the loan and security agreement with its funder and launched a secondary placement on July 10 of about 52.9-million Vukile shares. This represented Encha Properties’ entire shareholding in Vukile and about 4.6% of its current shares outstanding.
The shares were placed at a price of R15.50, representing a 0.8% discount to the pre-launch Vukile 30-day volume weighted average price as at market close on July 10. The weighted average price per security achieved was R16.29.
Investec acted as sole bookrunner and settlement of the placement is expected to occur on July 16.
“Following the placement, Encha Properties will no longer be a shareholder in Vukile. Vukile would like to express its gratitude to Encha Properties for being a remarkable partner during the past 11 years,” Vukile said in a statement on Thursday.
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