Prime Kapital supercharges MAS offer with potential doubled liquidity

Martin Slabbert

“We previously announced that over R2.2bn has been allocated to fund the cash portion of our voluntary bid. I’m pleased to confirm that we are now close to securing more than double that amount. This additional liquidity provides us with flexibility - it can be used to significantly increase the cash component of the voluntary bid, should we choose to do so.

At the same time, we are actively considering the alternative of making a substantial cash distribution to PKM Developments shareholders. Such a distribution would position MAS to resume dividend payments as early as September this year.”

Importantly, shareholders retain complete flexibility. They can elect to take cash for at least 17% of their holding - and potentially double that, as we finalise additional liquidity that could more than double the cash available. They can also choose to take only cash and keep their MAS shares if they prefer not to hold preference shares.”

Moldova Mall

The company also emphasised the attractive nature of the preference shares included in the offer:

“The listed preference shares we are offering are, in our view, generous and well‑structured. While liquidity in the market may vary, these shares are commonplace, well understood, and are designed to be redeemed in cash by the issuing company - investors are not dependent on secondary market trading.

The redemption value is set at the higher of €1.50 per MAS share (around R31 at current exchange rates, compounding at 7% annually) or 90% of MAS’s adjusted NAV per share. Very few property shares trade anywhere near 90% of NAV, which makes this an exceptionally strong proposition.

Martin concluded:

“We continue to take into account shareholder feedback and are prepared to refine the offer where needed. Our main goal is to unlock and grow shareholder value, and we’re right there alongside independent shareholders every step of the way.

If we cannot reach alignment, PKM Developments may instead distribute the new liquidity directly, which would pave the way for MAS to resume dividends this year. Either way, we see significant value being unlocked for investors.”