EMIRA PROPERTY STRIVES FOR MERGER WITH SAC
IN LINEWITH a growing trend of consolidation in the listed property sector, Emira Property Fund said yesterday that it wished to merge with SA Corporate Real Estate (SAC) in a share exchange. SAC has a R17.8billion portfolio of industrial, retail, inner-city residential and commercial assets, according to its website. Emira has a portfolio of R12.5bn of offices, urban retail, industrial and residential properties, with investments in Australia and the US. Emira management said yesterday that at the time of their proposal, the exchange ratio of 0.25 implied a 23.2 percent premium based on the closing prices for SAC shares and Emira shares as at June 6, 2019. The exchange ratio implied that an offer price of R3.47 per SAC share, and a premium of 5.9 percent, based on respectiv e closing share prices for Emira and SAC on July 9, 2019; and an offer price of R3.45 per SAC share and a premium of 18.4 percent, based on respective 30 day average prices for Emira and SAC as at July 9, 2019. Emira said that it had yet to receive a formal response from the SAC board, despite “a number of approaches” being made. SAC did not respond to calls from Business Report yesterday. “Given the compelling rationale for a merger of Emira and SAC, Emira affirms that, while it has not yet communicated a firm intention to make an offer to SAC, it is ready, able and willing to proceed with the proposed transaction and hopes to engage with SAC in a constructiv e and co-operative manner, in order to complete its due diligence and submit a binding offer to SAC in line with the terms set out above,” a statement said.