SA Corporate’s acquisition of Indluplace has created a group with a property portfolio of nearly R20bn, with the former hoping to achieve the mass the latter has failed to since listing on the JSE in 2015.
The two companies on Tuesday said Indluplace received approval for its takeover by fellow JSE-listed real estate investment trust (Reit) SA Corporate Real Estate and will make its last payment to shareholders at end-July.
The merger will cause Indluplace to delist from the local bourse next month, marking the end of a tumultuous eight years on the JSE. The company’s share price has plunged 63% over the past five years, taking its market capitalisation to just more than R1bn.
According to Tuesday’s announcement, all the conditions have been met for the deal to go ahead, including obtaining a compliance certificate from the takeover regulation panel, which is empowered by the Companies Act to ensure compliance in takeovers and mergers.
Indluplace’s last trading day on the JSE will be July 25 before clean-out distributions are paid on July 31.
The company declared no interim dividend in May as it awaited the possible takeover.
SA Corporate owns a diversified portfolio of assets in SA valued at R16bn and a 50% stake in three Zambian entities with properties valued at R1.1bn.
Indluplace has a portfolio of 124 buildings, valued at R3.3bn, with most situated in Gauteng, with limited exposure in Mpumalanga and the Free State.
SA Corporate, worth about R4.6bn on the local bourse, first announced its intention to acquire the entire issued ordinary shares of Indluplace in March, saying the deal provides Indluplace shareholders with a liquidity event through a cash offer for their shares.
It said the deal would enable it to grow its portfolio in the residential sector and further its strategy of creating a larger, more diversified residential property portfolio.
Indluplace majority shareholder Fairvest was the first to endorse the merger. It expects to receive R651m from the sale of its 56% stake in the company.
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.