Value havoc con­tin­ues

Share price of the em­bat­tled small-cap com­pany takes a dive as yet an­other CEO de­parts

Financial Mail - - MONEY&INVESTING - Joan Muller

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

Freddy Mavunda

Nosiphiwo Bal­four: Sur­prise res­ig­na­tion; the fourth CEO to leave the com­pany in three years

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