Delta, Rebosis and Ascension: Proposed merger of funds called off

The proposed merger between listed property funds Delta, Rebosis and Ascension has been called off. The transaction would have created the largest black economic empowerment property fund listed on the JSE with a property portfolio valued in excess of R16.5 billion and a market capitalisation of R9.5bn. Delta and Rebosis said this week that while they were satisfied with the outcome of their due diligence investigations, they had agreed that a tripartite merger was “not currently opportune”. This has resulted in Delta selling its entire holding of linked units in Ascension, comprising 28 million A-linked units and 82.57 million B-linked units, to Rebosis for a cash consideration of R4.76 an A-linked unit and R2.61 a B-linked unit. The three funds in February concluded a written co-operation agreement with the intention of exploring a possible merger. This followed a simmering dispute in which both Delta and Rebosis announced details of shares acquired or secured in Ascension and both claimed to have valid agreements for the acquisition of the Ascension Management Company. – Roy Cokayne