Delta, Pivotal mull alliance

DELTA Africa, the listed property fund formerly known as Delta International, and JSE-listed Pivotal confirmed yesterday that they had successfully concluded duediligences related to the formation of a new strategic relationship. A number of conditions precedent have also been fulfilled. They said the remaining outstanding conditions precedent mostly related to the passing of the necessary shareholder and board approvals, and obtaining the required regulatory approvals and complying with applicable legislation, among others. The combined entity will be called Mara Delta Property Holdings. It will have assets under management valued at $458 million (R6.6 billion). In terms of an agreement, Delta Africa will acquire Pivotal’s entire 45.5 percent shareholding in Buffalo Mall Naivasha in Kenya for $6.7m, while Mara Delta will acquire Pivotal’s entire shareholding in SB Wings Development for $66.78m. Delta Africa’s shares on the JSE increased by 2.7 percent to R19, which valued the company at R1.4bn. Pivotal rose 2.87 percent to R19, which valued the firm at R6.3bn. – Roy Cokayne