South Africa’s REIT Attacq to dispose of its shares in MAS real estate for US$34.2m

SOUTH AFRICA – South African-based Real Estate Investment Trust (REIT) Attacq, has announced that its wholly-owned indirect subsidiary, AIM Investco, has entered into a sale of shares agreement to dispose of its 41.67 million shares in MAS Real Estate for US$34.2 million, with the proceeds from the disposal earmarked to reduce its overall debt levels and improving its interest cover ratio.

Attacq said the disposal will be effected by an off-market block trade on or before January 20, and the consideration, payable in cash, represents a disposal price of US$0.82 per MAS share, prior to costs, which is a 2.1 percent discount to the closing spot price of US$0.86 as at December 23, being the date prior to the conclusion of the sale agreement, and an 11.7 percent premium to the 30-day volume weighted average share price on the same date.

“The proceeds will be used to reduce Attacq’s debt and fund upcoming development opportunities. Following the disposal, Attacq’s remaining shareholding in MAS will be 105.15 million shares representing 14.8 percent of MAS’ issued share capital”

AIM Investco is the holder of Attacq group’s shareholding in MAS, an internally managed property investor and operator focused on retail properties in Central and Eastern Europe.

Attacq said the acquirer of the 41.67 million shares is BPESA V MAS, a special purpose vehicle incorporated to house a strategic investment in MAS and BPESA is owned by the Mary Oppenheimer family interests.

The group said the disposal is part of its stated intention of reducing its overall debt levels and improving its interest cover ratio.

“The proceeds will be used to reduce Attacq’s debt and fund upcoming development opportunities. Following the disposal, Attacq’s remaining shareholding in MAS will be 105.15 million shares representing 14.8 percent of MAS’ issued share capital,” the group said.

Attacq also added that it supports MAS’ stated strategy and intends holding its remaining MAS shares in order to derive long-term total returns.

The group said the transaction is categorized as a category 2 transaction in terms of the Johannesburg Stock Exchange Listings Requirements and accordingly does not require the approval of Attacq shareholders.

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