This article is from the Australian Property Journal archive
IN the run up to a shareholder vote on its demerger from BlackWall, coworking business WOTSO has entered into a memorandum of understanding with a “significant ASX listed diversified property group” for an investment of up to $20 million.
The demerger involves a capital reduction to be satisfied by an in-specie distribution of 86% of WOTSO shares. WOTSO intends to raise capital via a strategic placement for up to $30 million, and an entitlement offer to raise up to $10 million.
“The placement is subject to confidentiality while the relevant party completes due diligence enquiries, the negotiation of a subscription agreement, and approval of the demerger at the BWF EGM to be held on the 20 December 2019,” WOTSO said in a share market update.”
If the investment is made, the investing party will be entitled to appoint a nominee director to the WOTSO board.
WOTSO aims to seek a listing on ASX in its own right in 2020. John Tuxworth has been named as chair of the WOTSO board upon demerger, and Rose Herceg and Peter Walsh will be none executive directors.
BlackWall intends on retaining a 14% interest in its WOTSO coworking business should the demerger go ahead, reflecting an adopted valuation of WOTSO at $35 million.