Safari says investors unlikely to approve Comprop takeover bid
Comprop’s offer of an ex-dividend price of R5.90 a share does not have enough shareholder support
Safari Investments, which walked away from a potential merger with Fairvest earlier in August, says shareholders are also unlikely to approve a better takeover offer from Comprop.
Comprop, an unlisted group, offered to buy Safari outright for R1.8bn in July.
Safari said on Monday that shareholders holding more than 25% of its shares had said they would vote against Comprop’s offer to pay an ex-dividend price of R5.90 a share.
Safari’s shares were last traded at R5.20, a 4% increase on the day.
“Due to opposing positions expressed by shareholders in the confirmatory letters, it is presently highly unlikely that the scheme will be approved by the requisite majority of shareholders ... notwithstanding the significant level of support for the Comprop proposal,” Safari said.
Safari’s independent board was in talks with Comprop “with a view to resolving the impasse”.
An independent professional expert would be appointed to determine whether the Comprop proposal was fair and reasonable.
Safari said earlier in August that Comprop had undertakings from five Safari shareholders, who held 55.7% of the company’s shares, that they would vote against all resolutions required to implement the Fairvest merger.
But they had also given undertakings to vote in favour of the Comprop deal.