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Castleview Property Fund Limited Issues Specific Shares for Cash

Strategic Insights

— 1 min read

Castleview Property Fund Limited has announced that it will issue specific shares for cash in a transaction aimed at building its cash reserves for liquidity management purposes. The company has entered into a share subscription agreement with Select Opportunities Fund En Commandite Partnership, which will subscribe for a maximum of 30,487,805 shares at an issue price of R6.56 per share. The rationale behind the specific issue is to bolster Castleview's risk management procedures and maintain liquidity.

Key Takeaways:

  • Castleview Property Fund Limited will issue a maximum of 30,487,805 shares at an issue price of R6.56 per share, totaling R200,000,000.
  • The specific issue is for cash and relates to a class of Castleview shares already in issue.
  • The rationale for the specific issue is to build Castleview's cash reserves for liquidity management purposes.
  • The transaction requires approval by a special resolution of Castleview shareholders, excluding the subscriber and its associates.
  • A fairness opinion from an independent expert, BSM Advisory Proprietary Limited, will be obtained to validate the subscription price.
  • The specific issue remains conditional upon approval by Castleview shareholders and valid adoption of resolutions by the parties involved.
  • Details of the specific issue will be included in a circular to be distributed to shareholders, along with a notice convening a general meeting.

Statistics:

  • 30,487,805 shares to be issued to Select Opportunities Fund En Commandite Partnership
  • R6.56 per share issue price
  • R200,000,000 total subscription value
  • 20% discount to the spot price of a Castleview share immediately prior to the execution of the subscription agreement
  • 75% majority of votes required for approval by Castleview shareholders
  • 2 July 2025 date for distribution of circular and general meeting of shareholders

Sources:

  • Johannesburg Stock Exchange (JSE) company announcement
  • Castleview Property Fund Limited (Incorporated in the Republic of South Africa)
  • Companies Act, 71 of 2008
  • JSE Listings Requirements
  • BSM Advisory Proprietary Limited

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