Redefine comments on PIC's bid for CBS

Posted On Thursday, 22 March 2007 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

A bid by Redefine Income Fund to acquire CBS has been the source of market speculation for some time

Brian AzizollahoffRedefine Income Fund Limited has noted the offer made by the Public Investment Corporation (PIC) to acquire all the linked units in CBS Property Portfolio Limited other than the 13.1% already held by the PIC. The  offer made on 22 March 2007 requires that the PIC will own not less than 50.01% of the linked units in issue on implementation date.

“At first glance, the offer made by PIC to acquire CBS appears to be an attractive option for unitholders,” comments Brian Azizollahoff, Redefine Income Fund CEO. “In the event of Redefine accepting this offer, Redefine would be making a substantial capital profit on its holdings in CBS. That said, we must still consider it very carefully, as Redefine is in the same position as a number of the large investors in the sector that have expressed disfavour with taking cash in exchange for listed units. There are constraints as to where one can invest cash. It is already difficult to find sizeable quantities of listed stock, so a number of investors are sitting with cash piles that are not being ideally utilised.

“Further, a number of unitholders, including those who concur with the previous comment, have intimated that they are not supportive of seeing a contraction of the number of counters available in and market capitalisation of the sector. As such, a transaction of this nature is not advantageous to investors in the sector.”

A bid by Redefine Income Fund to acquire CBS has been the source of market speculation for some time. “Whilst we are disappointed that this property acquisition did not come to fruition from our side, Redefine is reviewing the offer and, as always, will act in the best interests of its unitholders.”  Redefine owns just over 10% of the CBS linked units in issue.

Last modified on Friday, 25 April 2014 18:03

Most Popular

City of Joburg Housing Development wins UN award

Sep 17, 2019
 MESHACK VAN WYK
The City of Johannesburg’s Housing department has won a Sustainable Cities and Human…

Mall of Africa Celebrates Launch of New Generation Pick n Pay Store

Sep 23, 2019
 MOA PNP  1
Today Mall of Africa welcomed one of South Africa's biggest grocery retailers to the…

Exemplar REITail Acquires Katale Square Shopping Centre

Sep 23, 2019
 JASON MCCORMICK
Real estate investment trust, Exemplar REITail, has acquired Katale Square shopping…

Mixed-use is the key to funding hotel development in Africa

Sep 17, 2019
 XANDER NIJNENS
JLL’s research into global property transactions reveals that in the first half of 2019,…

Reserve Bank keeps repo rate unchanged

Sep 23, 2019
 LESETJA KGANYAGO
 South African Reserve Bank Governor Lesetja Kganyago on Thursday said this is in line…

Please publish modules in offcanvas position.