Castleview plans ZAR200m share issue for cash reserves

Castleview Property Fund Limited (JSE: CVW) has announced a specific issue of shares for cash to Select Opportunities Fund En Commandite Partnership, aiming to raise ZAR200 million. The company will issue a maximum of 30,487,805 shares at a subscription price of ZAR6.56 per share. The rationale behind the move is to bolster Castleview’s cash reserves for liquidity management purposes, aligning with the company’s risk management procedures. Because the subscriber is related party to Castleview a special resolution from shareholders will be required. The subscription price represents a 20% discount to the spot price of a Castleview share measured immediately prior to the execution of the subscription agreement and as such, Castleview is required to obtain a fairness opinion from an independent expert. The transaction is subject to shareholder approval and other customary resolutions. A circular with full details and a notice for a general meeting will be distributed to shareholders in due course. Java Capital are the designated advisor.