Emira Property Fund has announced a transaction that will see 5% of its shares in issue being owned by strategic black partners.
Letsema Holdings and Tamela Holdings, through their wholly owned subsidiaries, will subscribe for 2.5% each, together amounting to 26,133,364 Emira shares. The combined 5% will have a market value of R364.2m, based on the 30-day volume, weighted average price of the shares on May 22 of R13.9372 a share.
Emira CEO Geoff Jennett said this transaction secures a strategic, sustainable and commercially driven black economic empowerment (BEE) shareholding.
"Emira is serious about transformation and empowerment. With this proposed transaction, our new shareholders and BEE partners, who are respected business people who also have strong BEE credentials, will add valuable strategic input to Emira at board level. Both parties are making a significant investment in Emira and they are as invested as we are in improving Emira’s share price and business for the benefit of all stakeholders, said Jennett. "As part of the transaction, they are committed to remain invested in Emira for at least a five year period."