SA Corporate considers takeover and merger offers
SA Corporate Real Estate's shares have nearly halved in value compared to their 2017 high
SA Corporate Real Estate, whose shares have nearly halved in value compared to their 2017 high, says it has received buyout and merger offers from a number of suitors.
Amid a difficult period for landlords, fund managers have been saying for some time the industry is ripe for consolidation.
Earlier in 2019, Arrowhead Properties and Gemgrow Properties announced merger plans, while Fairvest Property Holdings and Safari Investments also say they are considering a “friendly merger”.
SA Corporate, which has seen a number of board changes in recent months, said on Tuesday it had received several non-binding expressions of interest "from credible third parties relating to proposed offers for and/or mergers with the company".
The group’s board had established an independent board sub-committee to advise it on the proposals, it said. The board would also appoint corporate advisers.
"Shareholders will be kept informed of further developments at the appropriate time," SA Corporate said, advising investors to trade in its shares with caution.
SA Corporate’s board is looking for a new chair after removing Jeff Molobela from the position earlier in June. At the company’s AGM in May, only 55% of eligible votes were in favour of Molobela retaining his position as chair.
Molobela’s removal came just weeks after the sudden resignations of MD Rory Mackey and financial director Antoinette Basson.
SA Corporate’s shares were 2.7% up at R3.05 at noon on Tuesday. In February 2017, the stock reached a high of R5.89, according to Iress data.