8th Mar 2023 14:23
(Alliance News) - Grit Real Estate Income Group Ltd on Wednesday said it has sold 6.4 million shares in Letole la Rona, reducing its interest in the company by 2.3%, to 11.3%.
The Pan-African property investment and management company said the sale was made at a price of BWP3.51 per share, or USD0.26, representing a 12.7% premium on net asset value per share at December 31.
From the sale, Grit received proceeds of USD1.7 million.
In December, Grit disposed of 6.8% interest in LLR at a 15% premium, worth USD5.2 million, and in February disposed of a further 4.8% interest at a 13% premium, raising USD3.5 million.
Chief Executive Officer Bronwyn Knight said: "The disposal by Grit of a 13.9% interest in Letlole La Rona is in line with, and materially contributes towards, the Company's stated strategies of asset recycling 20% of the value of its portfolio by 31 December 2023 and the ongoing reduction in Grit lifetime value.
"While Grit remains highly committed to investment in Botswana and the broader region, this recycled capital will now be redeployed in support of Grit’s ongoing transition towards Africa impact focussed assets, which are expected to deliver near and longer term value creation and growth opportunities in net asset value and income, for the benefit of all our stakeholders, including the people of Africa."
Grit shares fell 9.1% to 30.00 pence each in London on Wednesday afternoon.
By Harvey Dorset, Alliance News reporter
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