By Nick Wilson
Listed property company Bonatla Property Holding's share price surged more than 50% to 40c on Thursday after the JSE allowed trading to resume.
On Tuesday the JSE halted trade in the shares of Bonatla after price-sensitive details of a property deal were leaked to Business Day and published.
Bonatla on Tuesday announced details of its deal with Malaysian company Renong as well as several other transactions worth R300m, which are still under negotiation.
Speculation was that the jump in the stock's price was related to the transaction.
Bonatla's share price had, however, dropped back by on Thursday afternoon to trade in a 30c-33c range at 4pm.
Business Day reported on Tuesday that Bonatla, assisted by former director Niki Vontas, was on the verge of signing a deal that would see it effectively buy half the shares in the Durban Point Development, allowing Malaysian company Renong to withdraw from SA.
The deal would cost Bonatla R200m.
The sale agreement, in Business Day's possession and dated January 8, shows the deal was structured in such a way that Renong would sell its entire investment in Renong SA, whose main asset is 80,4% of a company called Rocunion, to Bonatla.
Rocunion owns 100% of Rocpoint, which in turn owns half of the Durban Point Development.
Questions were raised over the structure of the deal because it seemed to effectively bypass Renong's South African empowerment partner, Vulindlela Investments, which owns 19,6% of Rocunion and has a pre-emptive right to acquire the other 80,4%.
But Vontas, who is acting as a consultant to Bonatla, said on Thursday Vulindlela's shareholding in Rocunion would remain untouched and that it had the same rights and privileges that it had previously.
Vontas said the strategy of Bonatla's board would be to try to introduce some new black empowerment groups to Bonatla.
Bonatla said the rationale behind all of the transactions was that the directors considered it "prudent to acquire a select but varied investment and development portfolio of property", to provide shareholders with a sustainable yield on their investment.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge
