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Raven Property Group Ltd on Thursday suspended the trading of its shares and will delist as part of a wider plan to divest itself of its Russian business to a company owned by its own management team.
‘In a short timeframe of just two weeks, the impact of the actions of Russia on Ukraine has completely compromised the company's business model and its ability to assess its current financial position and ability to inform the market accordingly,’ Raven said.
Consequently, it has suspended its share listings on the Johannesburg Stock Exchange, the London Stock Exchange, the International Stock Exchange, and the Moscow Exchange.
Additionally, Raven Property plans to divest itself of its Russian business to Cyprus-based Prestino Investments Ltd, which is owned and controlled by Raven's Russian management team. This will be done via a put option for a nominal cost.
‘The board believes this to be the most effective way to meet any further sanction and counter sanction requirements,’ the company said.
The transferral of the business will be accompanied by the delisting of its shares on all four exchanges.
Raven has also delayed the release of its annual results.
‘In these extraordinary times it has become necessary to take extraordinary measures in order to protect all employees and stakeholders in our business. The combination of volatile markets and the continual risk of sanctions and counter sanctions necessitates this transaction. We hope and pray for peace,’ said Chair Richard Jewson.
On Monday, index provider FTSE Russell, a subsidiary of London Stock Exchange Group PLC, announced that a number of Russia-linked companies will be deleted from the FTSE Russell indices due to insufficient liquidity, amid sanctions against Russia. Raven was included in this list, with the deletions coming into effect on Monday next week.
Operationally, the company's portfolio is almost fully let with all rents collected for February and demands now issued for March payments, 29% of which have already been received, Raven had said in early March.
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