Rebosis shares rocket 34% on talk of ‘financial matrix’ deal
CAPE TOWN - REBOSIS Property Fund’s share price shot up more than 34 percent yesterday after the group said it was in negotiations with local and offshore institutions and pension funds for a deal that “could change the financial matrix of Rebosis and crystallise value for shareholders”.
This follows a fractious shareholder meeting at the end of February where two large shareholders went into a dispute – the Amatolo Trust, which is controlled by Rebosis founder Sisa Ngebulana, and Zunaid Moti.
Ngebulana held about 26 percent of Rebosis, while Moti also claimed he was unfairly barred from voting on certain resolutions.
The group has struggled over the past three years, as evidenced by its share price, which traded at 31 cents yesterday after falling steadily from R8.41 three years ago.
Rebosis owns over R12 billion of early-stage, regionally dominant shopping centres, and large, single-tenanted commercial offices in South Africa.
It has five retail centres, and its 36 office properties have mainly been leased to government agencies, most notably the Department of Public Works.
Since the annual meeting, a number of share transactions have occurred between the two main shareholders.
The Amatolo Trust announced early in March that it had disposed of Rebosis A (REA) and Rebosis (REB) shares so that it held a 0 percent interest in REA shares and 5.84 percent of REB shares.
Moti’s shareholding at that stage went up to 57.72 percent of REA shares and 23.02 percent of REB shares in issue.
About two weeks later in March, Rebosis announced that Moti had sold a large number of his shares so that he now held 28.86 percent of REA shares and 12.49 percent of REB shares.
Also, at about the same time, a company called Citax Investments SA acquired REA and REB shares to bring its stake in Rebosis to 28.86 percent of REA shares and 24.71 percent of REB shares.
The proposed transaction which was announced yesterday – names could not be released due to non-disclosure agreements – would be subject to due diligence and regulatory approvals and the conclusion of formal agreements, Rebosis said.
If concluded, the deal would require a circular and shareholder approval.
Rebosis has been struggling in the weak property environment. Its loan to value was high at 72.4 percent by the end of the year to August 31, 2020 – the industry average is 40 percent – and the group was having to finance about R9.6bn of interest-bearing borrowings at that stage.
Rebosis shares closed 34.78 percent higher at R0.31 on the JSE yesterday.
BUSINESS REPORT 5