JSE-listed Arrowhead Properties has advised that it has started engaging in merger discussions with fellow-listed Fairvest Property.
This follows after an independent board assessing the potential merits of such a transaction with Fairvest, having determined that it is in the best interest of Arrowhead to become a larger and more liquid real estate investment trust.
Arrowhead has already received indications of support from its B shareholders for the transaction.
The independent board believes value will be unlocked through a merger, rather than a transaction that would result in Arrowhead becoming a listed subsidiary of Fairvest, where neither company would fully enjoy the benefits of increased size or liquidity.