Heriot talks at an early stage, says takeover target Safari
Retail landlord Safari Investments said on Monday it is in takeover talks with Heriot Reit.
Heriot, which listed in July 2017 and has a market capitalisation of R2.9bn, owns R4.6bn worth of commercial property and already has 10% of Safari, said last week it was interested in acquiring the rest of the company.
Safari, which has been a takeover target for more than a year, said it was approached by Heriot in January and the parties are still in talks but no offer has been made yet.
“This engagement is ongoing but still at a germinative stage. There can be no certainty that these discussions will or are likely to develop into any firm offer, or as to the nature or terms of any such proposal,” Safari said. The company said it has “a highly attractive portfolio of assets, and recognises the potential advantages of continuing to build scale around this portfolio”.
Safari, which listed in 2014, owns shopping centres that serve lower-income consumers mostly in and around Tshwane. It also owns Platz Am Meer shopping centre in Swakopmund, Namibia.
Safari, which has a market cap of R1.1bn, says that while it acknowledges the latest takeover attempt, its focus is on surviving the Covid-19 pandemic. The government imposed a three-week lockdown at the end of March, in which only essential services may operate and only essential goods may be sold.
“In the light of the outbreak of the Covid-19 pandemic, its widespread impact and the uncertainties and immediate challenges arising from this unprecedented development, the company’s immediate and primary focus is on the operational running of the business and dealing with the crisis,” Safari said.
TWO OFFERS
Last year, Safari was at the centre of two takeover bids by Fairvest Property and Community Property (ComProp). Fairvest wanted to merge with Safari via a share swap. The proposed deal valued each Safari share at R4.30. ComProp’s offer valued each share at R5.90. Dipula Income Fund also expressed an interesting in the company.
Safari’s share price closed at R3.50 on Monday.
THE IMMEDIATE AND PRIMARY FOCUS IS ON THE OPERATIONAL RUNNING OF THE BUSINESS AND DEALING WITH THE CRISIS