Small-cap property groups Fairvest Property Holdings and Safari Investments say they are considering a “friendly merger”.
“Having both received and considered a number of merger, disposal or acquisition proposals, Fairvest and Safari have agreed to engage with each other on an exclusive basis regarding a potential friendly merger,” the real estate groups said in a joint statement.
The companies have signed a non-binding expression of interest, “and it is premature for shareholders to be advised to exercise caution”.
After the announcement, Fairvest’s share price was 4.8% higher at R2.20, valuing the group at R2.2bn.
Safari’s stock was unchanged at R4.68, valuing it at R1.5bn.