Liberty Two Degrees (L2D) has announced that Liberty Group (Liberty), part of the Standard Bank Group, intends to buy-out L2D minority shareholders, which will consolidate the Liberty Group’s real estate assets.
The offer is to acquire the shares at R5.55, which is at a material premium of 46.4% to the volume-weighted average price at which L2D has been trading over the past thirty days.
“L2D is excited about adding value to the greater Standard Bank Group. This consolidation is an important step in L2D’s value creation journey where we aim to create experiential spaces to benefit future generations. This transaction will enable L2D to scale within a larger organisational context and create additional value for our stakeholders,” comments Amelia Beattie, Chief Executive of L2D.
Yuresh Maharaj, Chief Executive for Liberty Group adds: “Liberty has proposed a transaction that would unlock significant value for L2D shareholders whilst balancing the needs of its other stakeholders. We value our investment in L2D and expect this consolidation to further enhance the strong legacy already created by both businesses in the property sector.”
L2D’s independent board followed due process as per Takeover Regulations and was guided by external financial advisers and independent experts in assessing Liberty’s offer. A preliminary independent expert report concluded that the terms of the scheme, including the scheme consideration, were fair and reasonable to L2D shareholders, which informed the board’s recommendation.
Following the consolidation, L2D will form part of the greater Standard Bank Group and will be delisted from the JSE Main board. This transaction is expected to be finalised before the end of 2023.