Nepi aims for R465m in equity placement

The main purpose of the equity raising was to assist with the funding of recently announced acquisitions, it said in a statement. These comprise a 70% stake in the development known as Mega Mall, purchase of land for the development of the Vulcan Value Centre and the shares of the centre's joint venture partner.

Nepi is also listed in London and Bucharest stock exchanges and focuses mainly on Romanian property investments.

Nepi's equity raising was subject to pricing acceptable to it, which would be completed as part of a vendor consideration placing. The equity raising would be implemented through an accelerated book build process and only public investors would be eligible to participate, subject to a minimum subscription of R1m per investor.

The book build opened on Monday (9 September) and Nepi reserved the right to close it at any time thereafter. Pricing and allocations were expected to be announced no later than Tuesday morning (10 September) and settlement was expected to occur on Friday (13 September).

Application would be made for the issue and listing of the new ordinary shares on Friday (13 September) and accordingly would be issued cum dividend. Cum dividend refers to a stock trading with dividend up until the ex-dividend date. On or after this point, the stock trades without its dividend rights.

Macquarie First South Capital is acting as the sole book-runner for Nepi's equity raising.

Meanwhile, Nepi is facing legal action from a regional competitor relating to its plans to acquire part of the debt of a Romanian retail park. Should Nepi successfully acquire Sibiu Shopping City's debt, it would pave the way for it to either make a profit on the debt if it is repaid by Argo Real Estate Opportunities Fund, or to have a claim to the asset itself.

Argo Real Estate Opportunities Fund, which owns the retail park's, has struggled to repay the debt. Legal proceedings are underway in the Romanian courts.