Delta gets investor thumbs-up for Ascension acquisition
Delta Property Fund announced on Thursday that it had concluded agreements to acquire a 17.75% stake in Ascension properties and had received letters of support from institutional investors, which effectively secured it a major 41.40% investor voting bloc in Ascension.
“The acquisition provides Delta with a strategic stake in Ascension and supports Delta’s stated objective to ultimately acquire 100% of the issued share capital of Ascension,” said CEO Sandile Nomvete.
The company said it had received letters of support from “certain” institutional investors, who held some 23.65% of Ascension-linked units in issue, for a proposed scheme of arrangement in terms of Section 114 of the Companies Act, No 71 of 2008, or any other transaction structure which supported Delta’s stated objective.
“While this isn’t the straightforward transaction that Delta had initially anticipated by having Ascension Property Management Company as a conduit, we are confident that consolidation remains beneficial for Delta’s linked unitholders and an appealing opportunity for Ascension’s linked unitholders,” Nomvete held.
He added that, while Delta saw the concurrent sale of Ascension’s Manco to Rebosis Property Fund as an unrelated transaction, it was considering its legal position.
“Our acquisition of the Ascension-linked units will be yield-enhancing for investors and is an important step in securing the full capital of Ascension, [which] supports Delta’s growth strategy,” Nomvete concluded.
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