Picture: BLOOMBERG/CHRIS RATCLIFFE
Picture: BLOOMBERG/CHRIS RATCLIFFE

The share price of RDI Reit jumped as much as 19% on Wednesday morning after it confirmed it had been approached regarding a possible take-over offer.​

Media reports on Tuesday suggested that Australia-based Cromwell Property Group was seeking to acquire RDI’s entire share capital.

At 11am, RDI was up 14.5% to R28.74, having earlier gained as much as as 19.2%.

RDI, which has a primary listing in London, and a secondary listing on the JSE, said on Wednesday that Cromwell had until April 23 to make a firm offer.

“There can be no certainty that any offer can be made, nor as to the terms of any such offer,” the company said in a statement.

RDI was formerly known as Redefine International, and has a portfolio valued at about £1.65bn in the UK and Germany.

The company reported that net asset value per share had grown 3.8% to 2.70p in the year to end-August, while underlying earnings had grown 7.4%.

Cromwell said on Wednesday that any transaction would be consistent with its plans to grow funds under management and expand its footprint in Europe.

More than half of Cromwell’s A$11.5bn of assets under management as at the end of 2018 was concentrated in Europe.

Correction: March 217 2019
An earlier version of this article stated that RDI is  the UK arm of Redefine Properties. Although Redefine is a significant shareholder, the two are not operationally related. Business Day regrets the error.

gernetzkyk@businesslive.co.za