Turnstar reviews $30m bond on stronger Pula :: Mmegi Online

Property concern, Turnstar Holdings says it is reviewing the price at which it will offer shares to investors who participate in its $30 million bond due to a stronger local currency. The pula has been gaining strength against the US dollar since Turnstar announced plans to float the bond in April this year.

In a statement to shareholders, Turnstar said in light of the significantly stronger pula, it is undertaking a review of the forecast financial information, on which the conversion price was based, in order to finalise an appropriate conversion price for the convertible bonds. “As part of this exercise, Turnstar is also updating the forecast financial information for current trading conditions in Botswana and Tanzania in light of the economic and legislative changes in these respective countries which affect the operations of the company. The outcome of the review process is likely to be an amendment to the target conversion price and terms for the convertible bonds,” said the company.

From a peak of about P11.6 to a dollar, the pula has strengthened in the past months and ended yesterday’s trading at P10.75 to the greenback.

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