Arrowhead Properties (‘Arrowhead’), the South African JSE listed Real Estate Investment Trust, (‘REIT’) announced today that it has made an expression of interest to acquire all or the majority of the issued share capital of Emira Property Fund Limited (‘Emira’) by means of a scheme of arrangement subject to the satisfactory conclusion of a due diligence investigation in respect of Emira’s forecast income for the 12 months ending 30 June 2017.
“This proposed acquisition is a good opportunity for Arrowhead. As a team we have consistently exceeded market expectations and we believe we are able to extract maximum value from the combined portfolios,” Gerald Leissner, CEO of Arrowhead said.
Arrowhead, who successfully acquired Vividend in 2014, has engaged with a limited number of key shareholders of Emira, and have received support from shareholders holding approximately 22% of Emira’s shares in relation to the proposed transaction. The shareholders have either signed letters of support or irrevocable undertakings.
“We strongly believe that a combined Arrowhead and Emira, provides shareholders of both companies with a better investment opportunity. The successful conclusion of this transaction will result in a combined market capitalisation of approximately R16 billion. The end-result will be a fund with low gearing, trading at a favourable forward yield and highly liquid shares,” commented Imraan Suleman, Arrowhead CFO.
“We hope to engage with the board of Emira in a constructive and co-operative manner with a view to being in a position to make a firm offer in relation to the proposed transaction as soon as possible,” concluded Leissner.