CAPE TOWN – Comprop, the unlisted shopping centre group, has accused the board of Safari Investments of taking a negative view of Comprop’s offer to buy the listed group.
“Comprop finds it perplexing that the Safari board could propose a transaction at R4.15 (the effective price of a previous terminated merger proposal between Fairvest and Comprop earlier this year), but not propose the Comprop offer at an effective R5.90. We struggle to comprehend how this position is in the interests of Safari shareholders,” Comprop said in an update on its offer yesterday.
Comprop said several engagements with Safari took place to find out why the offer was not announced to shareholders.
Safari, in the interim, announced that the Comprop offer was unlikely to be approved by shareholders after it obtained letters of intent from more than 25 percent of its shareholders saying they would oppose the offer.
But Comprop argued it had been “inappropriate” for Safari to canvass shareholders on how they would vote before appointing an independent expert adviser to ascertain whether the Comprop offer was fair and reasonable.