Safari rejects takeover bid by Comprop
It received undertakings from shareholders who said they would vote against Comprop's offer.
Johannesburg-Stock Exchange listed shopping mall owner Safari Investments has turned down a takeover offer from unlisted property group Comprop. Safari owns malls in lower-income areas, as well as in Swakopmund, Namibia.
Comprop, which is part of Futuregrowth Asset Management, made a R1.8 billion cash bid for Safari in July to counter a share swap offer by mall owner Fairvest.
Safari’s board endorsed Fairvest’s offer, which it said was “friendly”. However, Fairvest has since withdrawn its bid.
Safari said on Tuesday it had received irrevocable undertakings from a group of shareholders who said they would vote against Comprop’s offer.
Safari said independent experts BDO Corporate, who were hired to look into the Comprop offer, advised that the offer consideration was at the lower end of a fair value range of between R5.80 and R6.67 per Safari share.
Safari also said an independent board appointed to communicate with Comprop was unable to reach an agreement with the group on certain legal and commercial aspects of the proposal, including cost recovery should the scheme fail.
According to Safari, Comprop said it will not agree to the cost recovery and will be reviewing the irrevocable undertakings and requesting engagement with those who provided such undertakings, and that it was not, at this stage, withdrawing its offer.
“Despite various opportunities and requests to do so over an extended period, Comprop has steadfastly declined to revise its position,” Safari said.
“There is no basis to consider that this stance will subsequently change, and it is therefore considered to be in Safari shareholders’ best interests for Safari to now bring the process to finality.”