CAPE TOWN – Rebosis Property Group’s share price shot up by as much as 20 percent to R0.59 a share on the JSE on Tuesday after it announced plans to merge with state-focused landlord Delta Property Fund.
The groups’ boards said a merger would represent a natural consolidation of their vision and strategy, and would help to value for shareholders.
It would provide scale and diversification, enhance their relationship with the Department of Public Works and government, and provide scale to restructure their balance sheets.
It would also help to manage loan-to-value, reduce capital costs, bolster tradeability and improve liquidity for shareholders.
A property analyst, who chose to remain anonymous, said that there were not enough details of potential benefits in the merger as there were risks for both groups, less so for Delta, hence the conjoining the balance sheets did not make the whole less risky.