Real estate investment trust (Reit) Resilient has proposed investing in JSE-listed Dipula Income Fund, but only if Dipula first simplifies its dual share capital structure.
Resilient envisages that it will co-own suitable retail assets with Dipula and will continue to support Dipula to play a leading role in the listed property sector, Dipula noted in an August 27 statement.
Resilient has proposed to invest R1-billion in Dipula to establish a strategic relationship reflected in co-ownership of Circus Triangle, with Resilient also holding a meaningful shareholding in Dipula with the right to nominate a director to Dipula’s board.
The proposal envisages that Dipula will offer to repurchase all the issued Dipula A shares for a consideration that shareholders elect between cash and Dipula B shares. Shareholders can choose to accept R6.61 in cash per Dipula A share, but subject to pro rata adjustment of the election so that the overall aggregate cash payable is equal to about R600-million.
Alternatively, they can choose an exchange for Dipula B shares at a swap ratio of two Dipula B shares per one Dipula A share held.
Further details are expected to be made available once Dipula has resolved to proceed with the proposal and the agreements have been concluded.