– Will ask shareholders to approve issuing up to 125 513 408 shares at a minimum price of US$ 1.54 per share to raise up to US$ 193 290 648.
– Proceeds of the capital raise to fund numerous recently announced, yield accretive acquisitions in Zambia, Mozambique, Kenya and Mauritius.
– Acquisitions significantly improve depth and quality of Mara Delta’s portfolio, mitigating country and sectoral risk.
– Acquisitions predominantly underpinned by strong, international counter parties under long leases.
Mara Delta announced a planned capital raise of up to US$ 193 290 648 to fund a number of recently announced, yield accretive acquisitions.
The minimum issue price of US$ 1.54 per share represents an approximate discount of 5.68% to the Company’s net asset value (NAV) as at 30 June 2016 (Mara Delta’s financial year-end) and an approximate discount of 11.49% to the Mauritian traded closing market price of US$1.74 on 28 October 2016.
Commented Bronwyn Corbett, Chief Executive of Mara Delta:
“All of the acquisitions are highly yield accretive, allowing us to issue the shares at a discount to net asset value without dilution of the distribution per share. This capital raise provides smaller investors with an ideal access point into the Company through the Mauritian stock exchange”.
“These acquisitions significantly improve the depth and quality of the property portfolio, mitigating concentration risk. Traditionally we’ve had a relatively large presence in Mozambique, which has now been counterbalanced by significant acquisitions in Mauritius”.
“In line with our risk mitigation policy, all assets are predominantly tenanted by blue chip, international companies under long-term leases.”
The increased size and liquidity as a result of the planned capital raise is expected to move Mara Delta significantly closer to the Stock Exchange of Mauritius’(SEM’s) top 10 companies (SEM10) and position the Company well for future inclusion on the SAPY, the JSE’s benchmark index for listed property.
In terms of SEM listings requirements, 75% of SEM shareholders need to approve the capital raise.
Shareholders have until Friday, 2 December to lodge their votes.
