Hosken Investments announces share repurchase, property deal with Union

Hosken Consolidated Investments (HCI) has announced related-party transactions with the Southern African Clothing and Textile Workers' Union (SACTWU), a material shareholder. HCI's subsidiary, Squirewood Investments, will repurchase 1,100,000 HCI shares from SACTWU for cash consideration of ZAR 144,100,000, at ZAR 131.00 per share. Furthermore, HCI will sell its shares in and shareholder loan claims against property-owning subsidiaries - Gallagher Estate Holdings, HCI Rand Daily Mail, and HCI Solly Sachs House to SACTWU for an aggregate consideration of ZAR 549,724,863. To facilitate the transaction, SACTWU will cede the purchase consideration from a further HCI share repurchase of 4,196,373 HCI shares, also at ZAR 131.00 per share, back to HCI. Shareholders must still approve the deal by the end of October. The transactions aim to provide SACTWU with a more regular income stream from investment property. Post implementation, SACTWU's shareholding in HCI will reduce from approximately 23.8% to 18.4%.