Texton Property Fund media statement: response to recent media article

Media Statement

Texton’s Board of Directors has noted the recent media reports with regards to a bid by Mr Rob Kane, former CEO of Texton to “regain control of the company“.

The Board would like to notify shareholders that Texton was not the source of these reports nor was any representative of the company contacted for comment or verification, prior to publication. There are a number of factual inaccuracies which the Board wishes to correct.

As set out in the ‘Appointment and Resignation of Executive Directors’ announcement released on SENS on 5th June 2015, shareholders were advised, inter alia, that Mr Kane had resigned as chief executive officer of the Company. Mr Kane, was not reported, “booted out” of the Company.

While the reports state that a number of shareholders have, off the record, verbalised their acceptance of Mr Kane’s takeover plans and are waiting for him to garner sufficient support, management has engaged with a significant number of institutional shareholders and retail investors who have rejected Mr Kane’s proposal on the grounds of, inter alia, the free option over 40 million Texton shares that he has requested at a strike price of R5,00 per share.

It should be noted that in respect of Mr Kane’s reported plans to replace, inter alia, Mr Marius Muller (Interim Chief Executive Officer), Ms Inge Pick (Chief Financial Officer), Mr Dempsey Naidoo (Chairman of the Board) and Mr John Alastair Legh (Non-executive director):

  • The Board expresses its full confidence in Mr Muller and Ms Pick in their roles as Executive Directors of Texton. There is no intention to replace Ms Pick as Chief Financial Officer and the Board is currently engaged in the process of selecting a permanent Chief Executive Officer; and
  • as set out in the ‘Change to the Board of Directors and Transaction with Directors’ announcement released on SENS on 11 October 2018, shareholders were advised that:
  • Mr Naidoo would not be making himself available for re-election as a Director at the upcoming annual general meeting in November 2018 (“AGM”) in order to facilitate the succession which has been planned; and
  • Mr Legh would not be making himself available for re-election as a Director at the AGM but would make himself available as an Alternate Director to Non-executive Director, Mr Thys van Heerden.

Texton was not formed out of the takeover of Vunani Property Investment Fund as reported. VPIF was listed on the JSE in 2011 and at the date of listing, an external management contract was in place between a subsidiary of Vunani Limited and VPIF. During 2013, the external management contract was bought by a company owned by Kane, De Rauville, Van Heerden and Legh among others.

Kane remained as sole CEO until his departure in July 2015 and was subsequently replaced by Ms de Rauville. He did not act as joint CEO with Ms de Rauville.

There was no takeover of Texton as noted in the report and Kane served as CEO of the Company from the date of listing up to his resignation.

Texton will continue to engage transparently and directly with its stakeholders by providing regular and accurate information on all Company related developments.