Default raises uncertainty over Texton
Property fund issues cautionary announcement
Texton Property Fund’s cautionary announcement concerning an empowerment consortium that holds a stake in the group adds uncertainty to the stock, an analyst says. A default event had occurred on the loan that the Public Investment Corporation (PIC) made to the consortium to acquire 14.8% (net of treasury shares) of the group. The breach giving rise to the default event needs to be remedied or the empowerment consortium may, in effect, be forced to exit the fund, subject to relevant procedural and regulatory approvals being complied with. Texton, which has a market capitalisation of R2.215bn, owns R5.5bn worth of assets spread across the UK and SA. Texton’s BEE partner’s stake was worth R287.95m. The share price is down 9.84% year to date after it closed 2.04% down on Friday at R5.77. The share price is down 44.8% on a three-year basis. Texton said it had been notified by the PIC as a representative of the Government Employees Pension Fund (GEPF), relating to the funding granted by ...
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