Sharemax eyes listing

Johannesburg - Controversial property company Sharemax has outlined proposals to reverse list onto the JSE via the small real estate counter Bonatla Property Holdings [JSE:BNT].

The announcement, issued on Tuesday morning, proposed that Bonatla acquire a slew of Sharemax properties for almost R5bn.

The deal, however, will be settled by the issuing of new Bonatla scrip.

If the transaction is taken at face value, Bonatla will become a sizeable player in the JSE's real estate sector, ranking in market value alongside counters like Acucap Properties and Vukile Property Fund.

But the deal makes provision for the acquisition of the share capital and loan accounts in the Sharemax properties. Exactly how much debt is attached to each property is not clear at this point.

The timing of the deal is also curious, with Sharemax currently under the cosh from media commentators (most notably Finweek's Vic de Klerk) around the sustainability and viability of the business.

No pro forma financial information was supplied in the notice around the proposed transaction. Bonatla said pro forma financial information was still being prepared and would be released in "due course", adding that a circular to shareholders was also being prepared.

The deal is subject to a due diligence, which Bonatla would complete within 15 business days, as well as all statutory approvals – including that of the JSE and Financial Services Board.

 - Fin24.com