Johannesburg - Listed Arrowhead Properties reported yesterday that it has made an expression of interest to acquire all, or the majority of, the issued share capital of listed Emira Property Fund by means of a scheme of arrangement.
The scheme is subject to the satisfactory conclusion of a due diligence investigation. Arrowhead said it had either signed letters of support or made irrevocable undertakings of support for the transaction from shareholders holding about 22 percent of Emira’s shares after engaging with a limited number of key shareholders in Emira.
Imraan Suleman, the chief financial officer of Arrowhead, said yesterday that the successful conclusion of the transaction would result in a combined market capitalisation of about R16 billion and result in a fund with low gearing, trading at a favourable forward yield.
“A combined Arrowhead and Emira, provides shareholders of both companies with a better investment opportunity,” he said.
Arrowhead shares rose 0.93 percent to close at R8.65.
BUSINESS REPORT