(Alliance News) - Grit Real Estate Income Group Ltd shares surged on Thursday in the wake of news that the company will bow out of the Johannesburg Stock Exchange.
Its stock was 18% higher at ZAR14.50 each in Johannesburg on Thursday afternoon. The real estate firm was untraded in London, last quoted at USD0.69.
Grit said Botswana Development Corp Ltd and Zep-Re will acquire shares held by investors on its JSE register for ZAR14.90 each.
Botswana Development is owned by the government of Botswana will Zep-Re is an institution which is part of the Common Market for Eastern & Southern Africa, a free trade area which includes nations like Kenya, Zimbabwe and Uganda.
Grit said it will retain its listing in both London and Mauritius, and will allow shareholders on the JSE register to transfer their shares elsewhere before it delists in Johannesburg.
The company said: "Grit is currently listed on three exchanges, which places a cost and administrative burden on the company (excessive management time is spent on regulatory compliance across the three exchanges and excessive costs are spent on three sets of advisors). The cost and complexity of being listed on three exchanges does not currently offer commensurate benefits and accordingly erodes shareholder value. Furthermore, trading in shares on the JSE is illiquid and has been illiquid for an extended period of time."
It expects its delisting in Johannesburg to be effective from July 29.
By Eric Cunha; ericcunha@alliancenews.com
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