Empowerment share sale at Clicks raises R1.2bn
Retail healthcare group Clicks has raised R1.27bn as part of an unwinding of its Clicks Group broad-based black economic empowerment (BEE) employee share scheme.
The retailer approved the scheme in 2011 and acquired 29.2-million, or 10%, of unlisted Clicks shares. On Friday, the group’s Employee Share Ownership Trust said it was "pleased to announce that the bookbuild has been successfully completed" as over 7.6-million shares had been sold to 35 participating investors as a result of unwinding 50% of the scheme.
The trust launched the accelerated bookbuild where BEE scheme shareholders sold their shares at R166 each, a discount on the previous closing price.
Portfolio manager at Mergence Investment Managers Peter Takaendesa said that while the bookbuild was not a "true capital raise", the discount offered for the bookbuild shares was small and in the interest of its empowerment shareholders and trust beneficiaries.
Clicks’s share price has climbed more than 90% in the past three years and more than 192% in the past five years.
However, it dropped 3.43% to R166.50 on Friday.