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Cautionary announcement fuels speculation that embattled property counter could be delisted and âtaken privateâ. 10:28
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Zunaid Moti, a Joburg car dealership tycoon, is currently the biggest single shareholder in Rebosis Property Fund. Image: Moneyweb
Rebosis Property Fund â the debt-burdened real estate investment trust (Reit) with a sector-high loan-to-value ratio (LTV) of over 75% – saw its share price surge 34.78% on Wednesday, on news of a possible rescue deal being negotiated with unnamed local and foreign investors.
The stock closed at R0.31 per share, which amounted to a gain of just 8 cents per share on the day as it is now regarded as a micro-cap, with a market capitalisation of around R161 million.
Elvira Wood
Sisa Ngebulana s Rebosis says it is in negotiations with investors for a possible transaction that could change its fortunes.
The company has been drowning in debt, sparking fears that it may soon go under.
Rebosis says if the negotiations go well, the transaction could fundamentally change its financial matrix.
It looks like the debt-laden Rebosis might be thrown a lifeline. On Wednesday morning, the property company founded by Sisa Ngebulana announced on the Stock Exchange News Service (SENS) that it is currently in negotiations with local and offshore institutions and pension funds for a possible transaction that could change its fortunes.
weekly newspaper.
Sisa Ngebulana believes that Rebosis Property Fund, the property empire he founded and listed in 2011 on the JSE, is being unfairly targeted. Rebosis has been buckling under the weight of a smothering debt load, which has forced Ngebulana to sell property assets to free up cash, and a share price meltdown, and some investors that have turned against the company. But Ngebulana says Rebosis is not the only company in SA’s property sector going through a rough time.
DM168 put some questions to Ngebulana about the plan to save Rebosis from collapse and the company admitting that it doesn’t pass the liquidity test in the short term. Ngebulana also reflects on his legal battle with Rebosis shareholder Zunaid Moti over the ownership of a block of company shares.