RDI jumps 19% on buy-out news
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.