* Martin Slabbert, CEO: The banking sector is becoming dysfunctional, which will provide well-capitalized businesses with opportunities
South African real estate investment fund "New Europe Property Investments" (symbol:NEP) yesterday announced it raised 40 million Euros from its shareholders, successfully concluding the guaranteed rights offering, according to a press release sent to the Bucharest Stock Exchange.
According to the press release, NEPI issued 14,285,714 shares, which caused its capital to increase to 102.78 million common shares.
The new shares were sold at a price of 2.8 Euros to shareholders registered in Great Britain and Romania and at a price of 30 ZAR to those of South Africa, price calculated using an exchange rate of 10.7 Rands/Euro.
The company's rights offering was oversubscribed by 48%.
Martin Slabbert, CEO of NEPI, explains the success of the offering through the high yield of the dividends.
In his opinion, the banking system is becoming dysfunctional, just like it did in 2009 and 2010, which will put pressure on the market and create opportunities for well capitalized businesses.
"We will continue to invest according to our long term plans", Martin Slabbert said yesterday.
At the time the announcement concerning the share capital increase was made, NEPI said that the funds drawn would be used to finance potential acquisitions in Romania, which are currently being negotiated, and if the acquisitions weren't made, the funds raised through the rights offering would be used to repay existing loans.
Fortress Income 2 Proprietary Limited, a branch owned by Fortress Income Fund Limited, which made the commitment to ensure the subscription of 14,285,714 shares through the rights offering, will not receive any shares, considering the fact that the rights offering was fully subscribed, NEPI
