Delta Property Fund and struggling Rebosis Property Fund agree to merge
CAPE TOWN - Delta Property Fund and struggling Rebosis Property Fund said they had agreed, in principle to a merger, even though the plan has hit resistance from some stakeholders.
Rebosis’s share price increased 6.25 percent yesterday morning to 34 cents - the price is low considering it once traded at R14.70 in 2013.
Delta’s share price bounced between 84 cents in the morning to as low as 73 cents (a 5.13 percent decline).
The merger discussions, first announced on August 6, remain subject to “various outstanding matters and stakeholder engagement support,” a statement said Wednesday.
Progress had been made on terms for the merger, and further announcements were expected, it said.
A Delta black economic empowerment consortium, Cornwall Crescent said after the merger was first announced that they oppose the plan. They want Delta, which is in a better financial position than Rebosis, to rather strengthen its balance sheet and reduce gearing.
Subsequently, Redefine, South Africa’s biggest real estate investment trust, which is exposed to Delta through loans to Cornwall, also said it was opposed to the proposed merger.