Safari Investments RSA Limited to Repurchase All Issued Shares, Excluding Certain Excluded Shareholders

Strategic Insights -

Safari Investments RSA Limited, a key player in the real estate investment trust (REIT) sector, has declared its intent to repurchase all its issued shares, excluding those held by certain excluded shareholders, through a scheme of arrangement. This development aims to address liquidity issues and reduce operational costs. The scheme is structured to offer Safari's shareholders a cash consideration of R8.00 per share, driven by a lack of liquidity and significant discounts to the net asset value. The Heriot Group, which holds a 59.20% stake in Safari, contributes to the limited trading activity, rendering the expenses of dual listings unjustifiable.

Key Takeaways:

  • Safari Investments RSA Limited has announced its intention to repurchase all issued shares, excluding those held by certain excluded shareholders, through a scheme of arrangement.
  • The scheme aims to address liquidity issues and reduce operational costs, with expected cost savings including reductions in audit fees and governance-related expenses.
  • The Heriot Group, which holds a 59.20% stake in Safari, contributes to the limited trading activity, leading to a significant discount to the net asset value.
  • The scheme proposes that Safari will repurchase up to 104.32 million shares for a total consideration of R834.57 million.
  • Upon completion, Safari will become a wholly-owned subsidiary of Heriot, leading to the cancellation of repurchased shares and their status update as authorized but unissued.
  • Safari's portfolio predominantly consists of retail properties in and around Pretoria, with a financial dynamics influencing the scheme's proposition.
  • The scheme is categorized as a category two transaction under the JSE Listings Requirements.
  • Safari plans to declare a clean-out distribution, contingent on the scheme's final approval, providing an additional financial event for shareholders.

Statistics:

  • 1.4 million shares have been traded, representing less than 0.6% of total shares, over the past year.
  • The scheme proposes that Safari will repurchase up to 104.32 million shares for a total consideration of R834.57 million.
  • Safari's net asset value per share as of June 30, 2025, stands at R11.77.
  • The distributable earnings per share of Safari as of June 30, 2025, is 74 cents, with basic earnings per share of 217.02 cents.

Sources:

  • Safaria Investments RSA Limited, Firm Intention Announcement on the Stock Exchange News Service (SENS), 17 Oct 2025.
  • Johannesburg Stock Exchange (JSE), Listinsg Requirements.
  • Safari Investments RSA Limited, Latest Financial Data, as of June 30, 2025.