Safari Investments and Fairvest Property Holdings yesterday announced details of a share swop for their “friendly merger”. The JSE-listed companies that both focus on the lower Living Standards Measure retail properties had announced at the end of March that they were in talks.
After the deal, the executive team would comprise Darren Wilder, currently chief executive of Fairfvest, as the new chief executive officer; Dirk Engelbrecht, currently chief executive of Safari, as the new chief operating officer; and Jacques Kriel, the chief financial officer of Fairvest, as the chief financial officer.
The merger was expected to bring about cost savings, and improved funding costs and other efficiencies over time as a result of greater critical mass. The liquidity of Safari shares was also expected to improve due to its increased market capitalisation.
Safari’s investors cheered the release of the details yesterday, as its share price increased 5 percent to 440cents and closed at R4.50. Fairvest’s share price rose 0.5 percent to 199c, but closed at R1.95.
In terms of the plan, Fairvest shareholders would exchange their shares for Safari shares at a swap ratio of 0.45 Safari shares for each Fairvest share.