Kuwait-based parent company to buy remaining shares of Jse-listed IFA Hotels & Resorts

JSE-listed IFA Hotels & Resorts yesterday said it had received a firm intention from Kuwait-based IFA Hotels & Resorts KSCC to acquire the issued ordinary shares in the capital of IFA Hotels & Resorts it did not already own.

IFA Hotels and Resorts, based on the north coast of KwaZuluNatal, is a subsidiary of IFA Hotels & Resorts KSCC — which holds 85% of its shares. The acquisition would result in the delisting of IFA Hotels & Resorts from the main board of the JSE.

“The intention is to convert IFA to a private company, subject to the provisions of the Companies Act, subsequent to the implementation of the delisting,” the company said. The offer would be implemented through a scheme of arrangement between IFA Hotels & Resorts and shareholders.

The offer price is 20c per scheme share, payable in cash, representing a 66.67% premium to the 12c closing price of the company’s shares on May 28.

The offer “thus provides IFA shareholders (other than IFA KSCC) with a cash exit opportu- nity at a premium to the current and historical market prices of the IFA shares,” IFA said.

IFA Hotels & Resorts KSCC is a public property investment firm listed and established in Kuwait.

The scheme is subject to various conditions, including shareholder approval via a vote, which would exclude IFA Hotels & Resorts KSCC.

With no public trades on the JSE, the company’s share price was unmoved yesterday, closing at 12c. Following the implementation of the transaction, application would be made by the offer or to the JSE “to terminate the listing of the IFA shares on the JSE”, the company said.