Shares in MAS Real Estate jumped almost 6% in early trade on Tuesday after it said it has entered into negotiations with Prime Kapital regarding the acquisition of Prime Kapital’s 60% interest in PKM Development.
If concluded successfully, the acquisition would effectively terminate the development joint venture (DJV) arrangements, with MAS and Prime Kapital continuing their respective investment strategies independently from one another.
Any transaction agreed between the parties would be subject to approval by shareholders in a general meeting, it said in a statement on Tuesday.
“This transaction would give MAS full ownership and control of the high-quality commercial assets in the DJV, which benefit from low levels of gearing. These assets include Carolina Mall, Arges Mall and Mall Moldova,” it said.
Mall Modova is an asset under development and is expected to be completed in April 2025.
Other benefits would include improved credit rating prospects for MAS and improved access to debt, as well as a significantly simplified structure, it said.
The process is expected to conclude by end of 2024, when a further announcement will follow. In the meantime, pending further announcements, shareholders were advised to exercise caution in dealing in their MAS shares.
At 10.30am on the JSE MAS’s shares were up 5.86% at R19.88.
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