Photo by: Duane Daws
JSE-listed Group Five has received an unsolicited R1.6-billion offer from global real estate firm Greenbay Properties for its European division.
Group Five said in a statement that the intention letter it received from Greenbay included confirmation that it had R1.6-billion cash held in escrow by Webber Wentzel Attorneys.
Greenbay had raised R4.5-billion in an accelerated bookbuild on August 21.
Group Five’s European assets include its highway toll road business, Intertoll Europe.
Greenbay pointed out in a separate statement that it invests directly and indirectly in income-yielding real estate and infrastructure assets in select geographies, including the Central and Eastern European (CEE) region.
"The target assets are consistent with Greenbay’s investment policy and would constitute in Greenbay’s hands a platform which the company is positioned to grow through the provision of sufficient capital and access to operating experience in Europe including in the CEE region," it stated.
Group Five's independent board will consider the merits of the offer, which will lapse if not accepted by 17:00 on October 20, and respond to Greenbay in due course.
The group's new board — appointed at an exceptional general meeting called by institutional investor Allan Gray on July 25 — on October 6 said it was developing a turnaround strategy for the group.
The board said it also confirmed that it had received expressions of interest from credible parties, and continues to receive new expressions of interest, relating to various other assets and businesses within the group.