Tower Property Fund shares shoot up on takeover offer
Share this article:
CAPE TOWN - The share price of Tower Property Fund climbed by up to 7.14 percent to R3.75 yesterday after it announced it was considering a takeover offer from RDC Properties, a multinational African property and investment group listed on the Botswana Stock Exchange.
The potential deal would result in the acquisition of all, or the majority, of Tower shares not already owned by RDC at R4 per share cash, and the potential delisting of Tower shares from the JSE, a statement said.
Tower’s board said the offer had been accompanied by undertakings, commitments and letters of comfort from RDC shareholders and funders, to show there was sufficient support from RDC shareholders to proceed with the transaction.
Tower’s board had allowed RDC to undertake a limited due diligence of Tower, and RDC had confirmed that it was satisfied with the outcome, a statement said.
“Furthermore, RDC has engaged with certain key Tower shareholders and has informed Tower that it has obtained irrevocable letters of support to vote in favour of the resolutions required to implement the scheme.”