CAPE TOWN – Rebosis Property Fund’s share price shot up as much as 25 percent to 40 cents yesterday, following an announcement that the merger with Delta Property Fund was on track, and that a capital raising might be undertaken. The share closed 9.38 percent up at R0.35 on the JSE yesterday.
This was even though Rebosis, in a separate trading statement, said it would not pay a final dividend for the 12 months to August 31, after becoming the first local Real Estate Investment Trust (Reit) to not declare an interim dividend earlier this year.
Delta and Rebosis proposed the merger in August – an earlier attempt at a merger in 2014 did not succeed. Rebosis, founded by Eastern Cape entrepreneur Sisa Ngebulana, was the first majority black-owned and managed Reit on the JSE when it listed in 2011.
The boards of the companies said preliminary due diligence on the companies had been completed, ahead of the merger proposal, including about an optimal capital structure for the proposed merged company.
Major shareholders and funders had been engaged to support a potential capital raise.