Listed private equity fund Trematon Capital Investments is planning to make an acquisition that will result in the fund no longer depending on Intec Telecom Systems for its performance.
Until now, the fund`s results have been determined solely by the performance of the Intec share, which is listed in London.
However, the fund is planning to acquire 1.7 million linked units in Spearhead Property Holdings for R36.6 million - to be paid through the issue of about 66.45 million Trematon shares.
Trematon is also planning to undertake a rights offer to raise at least R25 million.
According to the fund, this will result in it becoming a proactive investment company with a dedicated professional management team that will actively seek out investment opportunities.
"The effect of the acquisition is to ensure Trematon will have another liquid asset with a good income yield and good prospects for capital growth," the fund says.
"In future, Trematon will actively pursue new investment opportunities and will no longer be solely dependent on Intec`s share price. Intec is, however, likely to remain an important component of the company`s assets in the short- to medium-term."
Trematon`s net asset value of 59.5c a share on 28 February was up on the 43.8c a share recorded at the end of August, mainly because of an increase in Intec`s share price. However, it is still down on the 63.7c at the end of February last year.
The Trematon share closed at 79c on the JSE yesterday, up 6c or 8.2% from Wednesday`s close.
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