Value havoc continues
Share price of the embattled small-cap company takes a dive as yet another CEO departs
Long-suffering shareholders of Texton Property Fund have been dealt another blow with the surprise resignation of Nosiphiwo Balfour, the fourth CEO to leave the company in three years.
Balfour’s resignation on September 14 sent Texton’s share price tumbling 8% to a new low of 550c. That brings the stock’s total decline over the past three-and-a-half years to more than 50% and its dividend yield to close to 20% — the highest among the JSE’S 60-odd real estate stocks.
Balfour, a former banker and Investec property analyst, departed barely a year after she took over from Nic Morris. It comes shortly after the release of the company’s June results was postponed because the auditors needed more time to reassess the accounting treatment and disclosure of the Public Investment Corp’s (PIC) recent decision to exercise a put option, which forced Texton to buy back shares held by a BEE consortium.
The latter defaulted on a loan from the PIC to buy the shares in 2015.
Back then, Texton entered into a put option agreement with the PIC as security for the loan.
However, Texton has been beset by
The process of appointing a new permanent CEO has begun and any such appointment will be done with the longterm stability of the business in mind Dempsey Naidoo
Nosiphiwo Balfour: Surprise resignation; the fourth CEO to leave the company in three years