The controversial property syndication company Sharemax wants to sell all the properties in its investment portfolio for nearly R5bn.
The company on Tuesday announced that he accepted an offer by the listed group Bonatla Property Holdings to sell to Bonatla the 39 properties that were syndicated by Sharemax.
Bonatla Property Holdings, which had a market value of only R40m when it traded at 8c per share on Tuesday, is planning to pay R4,985bn for it by issuing new shares.
This means that the 10,000 investors in the syndicates will receive Bonatla shares and not cash for their shares in the schemes.
Sharemax investors will have to sell these Bonatla shares on the JSE if they want to convert them to cash.
It is not yet clear what the impact of the transaction will be on Bonatla’s share price and what value Sharemax investors can unlock.
Bonatla have been trying for some time to build a property portfolio, but has thus far had limited success as property owners have not been eager to accept its shares as payment.
Bonatla has also had disputes with the JSE over corporate reporting and trading of his shares has been suspended.
If the transaction goes through, then Sharemax will have nothing to do with the properties or investors. Bonatla will then own the whole portfolio and he plans to appoint an independent manager to oversee it.
When asked for comment, the management of Sharemax said all it has to say is in a media statement with very little information about the deal.
The deal is subject to approval of the shareholders (investors) of the syndicated properties.
The shareholders of both companies have to approve the bid with a majority vote of 75,1%.
If shareholders give it the green light, then Bonatla’s shareholders, the Securities Regulatory Panel, the Competition Commission and the JSE also have to give it the nod.
The offer is also subject to an audit investigation in the next two weeks. – David van Rooyen, Sake24
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