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.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.