South African fund pulls plug on Capital & Regional takeover
A South African property fund has pulled out of a potential bidding war to acquire asset manager and real estate investment trust (REIT) Capital & Regional.
Johannesburg-based Vukile Fund said said that it had been unable to reach an agreement with Growthpoint – which controls around 68.1% of Capital & Regional’s share capital – as to the terms and structure of any possible offer. It has therefore confirmed that it does not intend to make an offer.
At the time, fellow REIT NewRiver emerged as another party interested in an acquisition of Capital & Regional. NewRiver has since confirmed that it had made a proposal to Growthpoint regarding a possible offer for Capital & Regional, stating that an acquisition would be “significantly accretive” to its earnings.
However, NewRiver said there can be no certainty that any offer will be made, nor as to the terms of any such offer.