Further to the Circular to Unitholders of Letlole La Rona Limited (“LLR” or “the Company”) in relation to the related party transaction (“the Transaction”) and notice of Extraordinary General Meeting (“EGM”) of the Company (“the Circular”) published on X-News on the 23rd of May 2022, Unitholders are advised that theEGM will not proceed on the 15th of June 2022 as had been previously communicated.The postponement follows the engagements between the Company and various Asset Managers wherein the Company received requests for additional information to assist them in making an informed decision.
In light of the above, the Board of the Company deliberated on the request and noted that the Company should accede to the request of the Asset Managers to provide the additional information for the Company to be as transparent as necessary in the related party transaction and allow the Unitholders to make an informed decision at the EGM.
The Company further notes that given the recent turbulence and adverse sentiments in the market in respect of listed entities and related party transactions, it is vital that the consideration of any related party transaction be thoroughly interrogated and all relevant information disclosed that would provide comfort to Unitholders in voting in favour a proposed transaction.The Company advises Unitholders that a supplementary notification pertaining to the Transaction will be issued in terms of section 6.10 of the Equity Listings Requirements.
The Company confirms that there has been no significant change affecting any matter contained in the Circular or published Related Party Announcement and there has been no new significant matter which has arisen, and which would have been required to be mentioned in the published Circular.The details of the new date of the EGM will be published through the BSE Exchange News (X-News) platform in due course.
LLR CEO, Ms Kamogelo Mowaneng commented:
“We strongly support transparency and full disclosure to stakeholders, particularly against the backdrop of recent media reports on offshore property valuations. It is therefore prudent to postpone the EGM and provide supplementary information which will allow unitholders to make a fully informed decision.
“We remain excited by the solid platform that the Transaction provides for further similar co-investment opportunities. The Transaction will see us earn US dollar revenue from one of the leading and oldest manufacturers in Kenya, a country widely regarded as the gateway to East Africa.
“The Transaction is strongly value accretive in terms of NAV growth with an expected US$ initial yield of 7%. It will further improve the fundamentals of LLR, considering the 25-year lease term.
By order of the Board
13 June 2022