Fairvest makes long-awaited offer for Bonatla's properties.

Posted On Monday, 27 January 2003 10:01 Published by
Rate this item
(0 votes)
CAPE TOWN Property loan stock company Fairvest Property Holdings has made a long-awaited offer for all the properties owned by Bonatla Property Holdings.

CAPE TOWN Property loan stock company Fairvest Property Holdings has made a long-awaited offer for all the properties owned by Bonatla Property Holdings, the Gauteng commercial and industrial property investment company.

The price tag of R157,3m is equivalent to about 85c a Bonatla share, which was the price published by Fairvest last November in its cautionary announcement on the proposed deal. In addition to the R157,3m being paid by way of the issue of new Fairvest linked units, Fairvest would also assume up to R20m of Bonatla's net current liabilities and mortgage bonds against the properties, Fairvest said on Friday.

Bonatla's market capitalisation on Friday, based on its current price of 45c a unit, was R83,3m. The shares are trading well below the group's tangible net asset value of about 87c a share.

According to its results for the year to September published in the middle of last month, the group's fixed assets totalled R631,3m, on which long-term debt was R456,9m.

Bonatla's current debt at endSeptember was R23,2m. The effective date of the offer will be April 1. Fairvest said its offer was subject to certain conditions, including the approval of the boards of both companies, regulatory approval and a limited due diligence. Both Fairvest and Bonatla have been mired in controversy in recent months.

Fairvest is probing possible fraudulent activity relating to put options in its shares, and it was reported recently that there was internal disagreement within Bonatla over strategic direction.


Publisher: Business Day
Source: Business Day

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Darryl_Mayers_CEO
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Tomasz_Trzósło
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Rethinking office space in post pandemic SA

Apr 20, 2021
90_Rivonia_results
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Carl_Coetzee_BetterBond_CEO
Make buying your dream home an informed purchase by knowing your credit score.

Western Cape ripe with affordable housing potential

Apr 20, 2021
Tuhf_Hi_res24
The TUHF Western Cape regional team believes that even though COVID has had an impact on…

Please publish modules in offcanvas position.