Emira, a diversified property owner in SA and the US, has made a cash offer to acquire Transcend Residential Property Fund.
- Transcend Residential Property Fund is considering leaving the JSE due to limitations from regulatory processes, which they feel outweigh the benefits of being listed.
- Transcend originally listed on the JSE in 2016 to gain access to institutional investment funding and grow its property portfolio.
- The company has struggled to attract investors interested in smaller property firms, and its share price has remained at a discount to its net asset value.
- Emira already holds a majority stake of 68.15% in Transcend and is now offering R6.30 per share for a complete takeover, backed by Absa.
- Shareholders SA Corporate, International Housing Solutions, and IHS, owning nearly a fifth of Transcend, have indicated their support for the deal.
- Emira previously attempted a takeover in July 2022, but the deal fell through after Deloitte deemed the terms “unfair and unreasonable” to shareholders.
- The departure of companies from the JSE, as seen in over 20 delistings in 2022, has raised concerns about portfolio diversification for asset managers and investors, potentially jeopardizing financial security.