CAPE TOWN – Fairvest Property Holdings has opted not to pursue a merger bid with Safari Investments RSA, after most of Safari’s shareholders declined Fairvest’s offer.
Fairvest’s share-swop merger proposal for Safari in March had been followed by a competing R1.8 billion cash offer for Safari from unlisted Community Property Company (Comprop) in July.
Safari’s share price increased more than 9 percent to R5.30 on Wednesday morning.
“We believe that increasing our bid to match an offer that equates to less than an 8 percent equity yield for the Safari assets would not have been beneficial to Fairvest shareholders,” Fairvest chief executive Darren Wilder said.
In terms of the Fairvest Safari merger plan, Safari would have acquired Fairvest through a scheme of arrangement, with shareholders receiving 0.45 Safari shares for each Fairvest share.