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Johannesburg - Property development group Pinnacle Point Group [JSE:PNG] said on Thursday that it has signed an agreement with its major shareholder, Trilinear Empowerment Trust under which Trilinear will subscribe for 1.3 million new shares.
The issue price will be one cent per share.
The shares will then be offered to Pinnacle shareholders by way of a claw back offer at one cent per share in the ratio of 18.54197 new Pinnacle ordinary shares for every 100 Pinnacle ordinary shares held.
Trilinear will subscribe for the claw back shares for a placement consideration of R13m.
The share certificate will be held in trust until the JSE authorises the release of the share certificate for the claw back offer.
Trilinear's shareholding in Pinnacle will then increase from 48.4% to approximately 56.5%.
The remaining conditions precedent for the agreement include the Securities Regulation Panel exemption of Trilinear from having to make a mandatory offer, and shareholder approval to waive the mandatory offer by Trilinear.
The proceeds of the subscription for claw back shares will be used for working capital and development expenditure.
