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REBOSIS PROPERTY FUND LIMITED - Joint cautionary announcement Potential merger of Delta and Rebosis

Release Date: 06/08/2019 08:49
Code(s): REB REA DLT REBC15     PDF:  
Wrap Text
Joint cautionary announcement – Potential merger of Delta and Rebosis

 DELTA PROPERTY FUND LTD                                                 REBOSIS PROPERTY FUND LTD
 (Incorporated in the Republic of South Africa)         (Incorporated in the Republic of South Africa)
 (Registration number 2002/005129/06)                          (Registration number 2010/003468/06)
 JSE share code: DLT                                       JSE share codes: REA ISIN: ZAE000240552
 JSE Alpha code: DLTI                                                         REB ISIN: ZAE000201687
 (Approved as a REIT by the JSE)                                                  JSE alpha code: REBI
 (“Delta”)                                                              (Approved as a REIT by the JSE)


Shareholders of Delta and Rebosis (the “Parties”) are advised that their respective boards have, in-
principle, agreed to enter into exclusive merger discussions in order to affect a potential transaction,
subject to various outstanding matters and stakeholder engagement and support (“Merger”).

Transaction Rationale

Delta and Rebosis are well respected Real Estate Investment Trusts with a focus on retail and
commercial property in South Africa. The Merger represents a natural consolidation of the Parties'
shared vision and strategy for the South African real estate market and represents a mutually
beneficial step in unlocking value for shareholders. It is envisaged that the Merger will result in, inter
alia, the following benefits:

    -   provide scale and diversification in the sector through consolidation of the individual balance
        sheets of the Parties;
    -   enhance the Parties relationship with the Department of Public Works and Government;
    -   provide scale for restructuring the Parties’ balance sheets, particularly as it relates to
        managing the loan-to-value ratio to an optimal level;
    -   provide for the reduction in capital costs through credit profile enhancement; and
    -   bolster tradability and improve liquidity for shareholders through the creation of a significant
        player of scale.

Next Steps

As is standard with a transaction of this nature, the next steps include a reciprocal due diligence,
discussions with key stakeholders, finalisation of the transaction structure, decisions around the new
management team and board composition. Shareholders and the market will be updated on the
process in this regard.

Accordingly, Delta and Rebosis shareholders are advised that, as discussions between the Parties are
ongoing, shareholders should exercise caution when dealing in the securities of Delta and Rebosis,
until a further announcement is made.


6 August 2019

 Transaction Advisor and Transaction Sponsor to                     Transaction Advisor to Rebosis
 Delta                                                              YW Capital
 PSG Capital

                                   Sponsor to Delta and Rebosis
                                   Nedbank Corporate and Investment Banking
Date: 06/08/2019 08:49:00
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