Rebosis/Delta battle for Ascension tightens up

Sisa Ngebulana’s Rebosis Property Fund has acquired 29.05% share in Ascension Properties’ B linked units in a move that tightens the battle between two black controlled listed property funds Rebosis and Delta Property Fund.

The two JSE listed funds, Rebosis and Delta, have locked horns in a bid to takeover Ascension. The fast developing battle is increasingly looking like a hostile bid on one end and on the other end a collaboration to repel the hostile bid.

The Rebosis/Ascension announcement came after Delta announced on Wednesday that it has acquired a 17.75% stake in Ascension Properties, and has received letters of support from institutional investors, which together effectively secure for Delta 41.40% investor voting bloc in Ascension.

In yesterday’s announcement Ascension advised that the KSK Trust has disposed its Ascension B linked units such that the KSK Trust now holds 0.0% of Ascension’s issued B linked units.

The Cape Empowerment Trust Limited has disposed of Ascension B linked units such that Cape Empowerment Trust Limited now holds 0.0% of Ascension’s issued B linked units.

Rebosis has acquired Ascension B linked units such that Rebosis now holds 29.05% of Ascension’s issued B linked units.

The battle between the two funds exploded into the public arena on Monday when Rebosis announced that it has reached an agreement to acquire Ascension Property Management Company (Manco) for about R150m whilst working towards full cooperation or merger with Ascension.

On Tuesday Delta announced that it had been in talks with the Ascension stable, Shaun Rai and affiliates, to acquire the very same Manco for about R105m. Delta said it had reached an agreement with Rai and affiliates where they had undertaken not to negotiate, discuss, dispose of, transfer or encumber their shareholding in Ascension until 7 February 2014.

That arrangement was disturbed by the Rebosis agreement to acquire the Manco.

Delta has noted that the Rebosis/Ascension Manco agreement appears to be valid. It also noted that in its agreement with Rai and affiliates it was entitled to receive “a break fee of R10 million should Shaun Rai and his affiliates elect not to enter into the sale…” with another party.

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