Pangbourne investors OK merger with Capital

Posted On Tuesday, 01 March 2011 02:00 Published by eProp Commercial Property News
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Pangbourne Properties announced on Monday that its unitholders had approved an offer by Capital Property Fund to buy its entire issued capital.

Capital Property Fund

 

 

 

 

 

 

 

The all-unit consideration would entail Pangbourne unitholders swapping their linked units in Pangbourne for units in Capital at a swap ratio of 2.38 Capital units for each Pangbourne unit.

The deal, which is still subject to the approval of the competition authorities, is set to be one of the largest property funds in South Africa, by market capitalisation, differentiated by its industrial and commercial focus.

The enlarged Capital may attract interest from a wider group of investors, enhancing the liquidity of its units, Pangbourne said.

"Increased market capitalisation and enhanced liquidity may result in Capital's inclusion in a number of stock exchange and property indices and, over time, may result in a re-rating of Capital.

"The potential re-rating and lower yield would position Capital to make further revenue enhancing acquisitions and its increased size, together with its moderate debt and secure cash flows, should enhance Capital's access to capital markets," Pangbourne said.

Last modified on Saturday, 05 March 2016 02:46

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