MAS updates shareholders on take-over bids, operational performance in Central and Eastern Europe
Image: Supplied
MAS, the JSE-listed company that invests mainly in Central and Eastern Europe retail properties, still has received no formal offers from the two competing bid proposals it had received: from Hyprop and from its development partner and shareholder, Prime Kapital Investments.
This was according to MAS's pre-close trading update released Monday, for the financial year to June 30, 2025, in which the owner of retail properties in Romania, Bulgaria, and Poland said all its properties had benefited from 'robust trading' in the five months to May 31.
MAS, which also has exposure to commercial and residential developments via a Development Joint Venture (DJV) with Prime Kapital Holdings as the developer and general contractor, said consumption had remained strong in all Central and Eastern European countries where the group operates during the five months.
Overall, like-for-like footfall in directly-owned properties was slightly above the same period in 2024, and tenants' sales per square metre exceeded prior year levels by 7%, both in enclosed malls and in open-air malls.
Updating shareholders on the bids, MAS said the planned transaction for the DJV to repurchase the 60% shares held by Prime Kapital in the DJV, and the termination of the joint venture, had failed in April after Prime Kapital withdrew from the transaction.
A month later, the MAS board received a letter from PK Investments (PKI), a subsidiary of the DJV, which owns more than 20% of MAS' shares, stating that PKI intended to make a voluntary offer for all of MAS, and two subsequent letters from PKI (on May 27 and on June 5) referred to certain improvements on the original offer.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
In the meantime, Hyprop Investments, on May 26, referred to a potential competing voluntary offer for MAS, which was followed by a capital raise on the JSE by Hyprop on June 2.
PKI, DJV, and Prime Kapital then sent a letter to MAS, requesting the board to convene an extraordinary general meeting (EGM) of MAS shareholders by July 11, to vote on two resolutions proposed by PKI.
'If the EGM resolutions are approved by the majority of shareholders, the board … will still need to assess whether, and to what extent, to give effect to the EGM resolutions, including whether any actions authorised by the EGM resolutions are in the best interests of MAS and its shareholders.'
Also, a difference of opinion between MAS and Prime Kapital had arisen about the priority of payments out of the DJV, and the matter might need to be referred to arbitration.
MAS' board said the appointment of a South African investment bank was being finalised to act as its independent corporate advisor, while Valeo Capital was appointed to act as its independent transaction sponsor.
'Until the review process has concluded, the board cannot express a view or recommendation on either the potential voluntary bids,' it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
38 minutes ago
- IOL News
Hyprop sells 50% stake in Hyde Park Corner for R805 million
Hyde Park shopping centre in Johannesburg is part of Hyprop Investments' South Africa retail portfolio. Fifty-pecent of the centre is being sold to private equity fund Millennium, the General Partner of which is beneficially owned by Stanger Enterprises, TF Holdings and Nisela Private Equity. Image: : Leon Nicholas/Independent Newspapers Hyprop has entered into an agreement to sell 50% of the Hyde Park Corner shopping centre, together with the rental enterprise thereon, for R805 million, to Millennium Equity Partners, with an option to dispose of the remaining 50%. The JSE-listed retail-focused Real Estate Investment Trust with properties in mixed-use precincts in South Africa and Central and Eastern Europe said Tuesday that the transaction was consistent with the company's strategy to allocate more capital to the Western Cape and Eastern Europe, and focus on regional malls rather than mid-sized malls. Millennium is a property private equity fund, the general partner of which is beneficially owned by Stanger Enterprises, TF Holdings, and Nisela Private Equity, none of whom are related parties of Hyprop. Hyprop's directors said the proceeds of the disposal would be allocated to reducing debt in the short term and for asset management initiatives, organic growth opportunities, further solar-PV projects, and new investments within Hyprop's existing operations. The property was internally asset managed by Hyprop, and the property management function would be outsourced to JHI in terms of the transaction. A Co-ownership Agreement provides for a put option in favour of Hyprop and a call option in favour of the purchaser which, if either is exercised, could result in the purchaser acquiring the remaining 50% undivided interest in the centre. Hyde Park Corner comprises 38 257 square metres of retail sector lettable space, with an average rental per square metre per month of R408.50. Hyprop said its directors were satisfied that the disposal price was considered to be fair market value. The value of the net assets and the profits attributable to the net assets of 100% of the rental enterprise were R1.58 billion and R46.52 million, respectively. Hyprop said days ago, in a pre-close update for the five months to May 31, that Hyde Park Corner saw the opening of luxury salon and day spa, Society 1840, during the period, and the centre was being 'significantly enhanced' with the opening of a new Checkers Freshex store in August. Several revamps had been completed or were underway, including Charles Greig, Sorbet Man, and Sorbet Beauty. Hyprop's loan-to-value ratio improved to 34.2% at the end of the five months from 36.3% at the end of December 2024, following the raising of R808 million in capital last month. The group also indicated it will put in a bid for JSE-listed Central and Eastern European retail property company MAS, and that the capital raise would be used, if the bid is successful, to help fund the cash portion of the acquisition. Visit:
The Citizen
an hour ago
- The Citizen
US tariff pause ends on 9 July: Tau says what happens now
South Africa, along with other African countries, is still seeking an extension beyond 9 July to submit a new deal proposal in response to US tariffs. With the United States (US) tariff pause of 90 days coming to an end on 9 July, there seems to be nothing happening now, but Minister of Trade, Industry and Competition Parks Tau says South Africa is one of the countries that is asking for an extension because there is so little time left. US President Donald Trump instituted tariffs on goods imported into the US in April, marking the day as 'US Liberation Day'. South Africa got slapped with a 30% tariff, but Trump decided to pause the tariffs for ninety days until 9 July. President Cyril Ramaphosa paid a quite acrimonious visit to the White House for a meeting with Trump, followed by trade talks between South African ministers and their US counterparts. Tau said afterwards that the South African delegation submitted a proposal to the US regarding a framework agreement, focusing on issues related to trade and investment. The proposal identified areas for increased trade and access to each party's markets, while illustrating the benefits of keeping channels as open as possible. ALSO READ: Will Trump's tariffs have major negative effect on South Africa's economy? Talks about US tariffs in Angola last week Last week, Zuko Godlimpi, deputy minister of trade, industry and competition (DTIC), met with the US trade representative responsible for Africa, Connie Hamilton, on the sidelines of the United States of America-Africa Summit in Luanda, Angola. According to a statement from the DTIC, the meeting followed South Africa's submission of a proposed Framework Deal with the US on 20 May 2025, which outlines measures to enhance mutually beneficial trade and investment relations with the US. The submission was immediately followed by Ramaphosa's meeting with Trump on 21 May. The Framework Deal addresses US concerns relating to issues such as non-tariff barriers, the trade deficit and commercial relations through two-way procurement or importing strategic goods. It also aims to resolve long-standing market access issues of interest to both sides and promote bilateral investments in a mutually beneficial manner. According to the DTIC, South Africa is also seeking, through the Framework Deal, to have some of the key export products exempted from the Section 232 duties, including cars and car parts, as well as steel and aluminium through tariff rate quotas. ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks SA prepared to settle for maximum US tariffs of 10% South Africa is also seeking the maximum tariff application of 10% as a worst-case situation. The Framework also seeks exemption for small and medium enterprises, counter-seasonal products and products that the US cannot produce itself. The DTIC says South Africa used the meeting with Hamilton in Luanda to continue to raise its concerns about the impact of the reciprocal tariffs on African countries, especially. 'One of the key issues that emerged from the meeting is that the US is developing a trade-matters template, which will be the basis for its engagements with countries in sub-Saharan Africa. 'The template will be shared as soon as it has gone through the internal approval processes in the US administration. South Africa welcomed this indication and expressed a preparedness to engage with the template once it is finalised.' Considering this development, including the limited time between now and the deadline for the expiry of the 90-day pause, African countries, including South Africa, have advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals according to the new template. ALSO READ: South Africa faces 25% tariff on US car imports, Minister Parks Tau voices concern Tau says SA would like to resubmit deal for US tariffs 'We believe that South Africa may need to resubmit its Framework Deal in accordance with the new template, and therefore, we expect that the deadline may be shifted,' Rau says. 'We urge the South African industry to exercise strategic patience and not take decisions in haste, and that government will continue to use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market.'
IOL News
an hour ago
- IOL News
African Rainbow Minerals to close Cato Ridge Works and retrench the employees
Assmang's crushing and screening plant at the Cato Ridge works is being closed permanently, the site remediated, and along with some surrounding land, will be redeveloped into a freight and logistics hub. Image: Ingi Salgado African Rainbow Minerals (ARM) on Tuesday said its Cato Ridge Works operations (CRW) and business would close permanently, and all affected employees would be retrenched on August 31, 2025. Its Malaysia business is also being sold. The CRW joint venture between ARM, which has well known South African businessman Patrice Motsepe as its biggest shareholder, and Assmang employed about 600 employees. ARM stated that a structured and comprehensive consultation process in accordance with Section 189 of the Labour Relations Act had been completed. 'This decision has been reached after a comprehensive review of CRW's operational and financial position. Despite sustained efforts to explore alternatives to closure, the operation has continued to experience significant and unsustainable financial losses,' ARM's directors said in a statement on the JSE's news service. They indicated that the CRW complex would be remediated and, together with the vacant land, redeveloped into a commercial and logistics hub 'that should in future create significant economic activity and employment in the area.' Assmang's board had approved the sale by Assmang to Assore SA PropCo, an Assore subsidiary, of certain land parcels, properties, and houses on the terms a sale agreement signed on June 27, 2025, between Assmang, Assore SA PropCo, Assore, Cato Ridge Development Company (CRDC), Feralloys, and ARM. The so-called 'Cato Ridge Transaction' will be implemented in two phases: Phase 1 comprises the purchase by Assore SA PropCo from Assmang of certain land and houses situated on or close to CRW, which will be developed by Assore SA PropCo, together with a sale by Assore SA PropCo of a portion of those properties to certain host communities for no consideration. Phase 2 will comprise the sale and purchase by Assore SA PropCo from Assmang of the remaining land on which CRW is located. Assore SA PropCo would pay R453.23 million to Assmang. Assmang is responsible for the implementation of the clean-up and remediation, but Assore SA PropCo would accept certain responsibilities regarding the clean-up and remediation of specific portions of the land being sold. Among the conditions were that Assmang complete the construction and installation of a reverse osmosis water plant and brine dam, and Assmang had to comply with applicable environmental law. In addition, Assmang would dispose of its 54.36% interest in Malaysia manganese alloy producer, Sakura, to Assore, following which Assmang was expected to distribute R900m in cash to ARM. ARM's share price gained 0.59% to R173.08 on the JSE Tuesday afternoon, with the price having fallen over 20% over the past 12 months. Visit:
