Transcend Residential Property Fund shares fell 7.2% to R5.80 yesterday after it posted a circular to shareholders that advised its shareholders not to vote in favour of the company’s acquisition by Emira Property Fund.
Transcend’s circular included its Independent Board’s recommendation on the offer and comments on certain statements in the offer that the Independent Board believed require “clarification”.
The Independent Board also appointed Deloitte to do a fair and reasonable assessment of the offer, and the auditing firm’s opinion was that the terms and conditions of the offer were unfair and unreasonable to shareholders.
The Independent Board also found the terms and conditions of the offer to be unfair and unreasonable to shareholders, and it recommended that shareholders reject the offer.
Emira’s general offer in July was at a clean share price of R5.38 per Transcend share, representing a 17% premium on a recent vendor placement price of R4.60 at the time.
BUSINESS REPORT