(Alliance News) - Grit Real Estate Income Group Ltd on Wednesday said it has entered into a USD13.8 million agreement which will see it take an additional 24% stake in Botswana-based property company Letlole La Rona Ltd.
Grit will buy 66.5 million Letlole shares from commercial and industrial development company Botswana Development Corp. Grit will boost its stake in Letlole to 30% from 6% as a result.
Grit said: "The purchase consideration will be settled through the issuance of new shares in Grit at USD1.40 per share, being the company's most recently reported European Public Real Estate Association net asset value."
Chief Executive Bronwyn Corbett added: "We are pleased to announce this further increase of our stake in Letlole, which represents an opportunity to utilise Letlole's local expertise and to gain exposure to exciting asset management opportunities whilst significantly increasing our presence in Botswana, a key market for Grit's future growth."
Grit shares were 0.4% lower at USD1.19 each in London on Wednesday morning. In Johannesburg afternoon, they were untraded at ZAR16.49.
By Eric Cunha; ericcunha@alliancenews.com
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