Safari raises funds in share sale in bid to cut debt

Safari Investments has privately placed 119,552,633 shares at R7.60 each through a combination of a specific and general issue raising R908,600,0011 in new equity, as it looks to reduce its overall debt level and to double in size in the next three years.

"A specific issue of shares by Safari was approved by shareholders at a special general meeting and in terms of the provisions of specific issues of shares for cash in terms of the JSE listings requirements. 

The issue was largely taken up by a new investor Southern Palace Capital, which now holds a significant 21% share in Safari. 

Safari is proud to be associated with this professional South African company and look forward to unlock synergies in the South African real estate sector. 

The balance of the specific issue was taken up by existing investors, Bridge Fund Asset Managers, WDB Investment Holdings, Stanlib Asset Managers and Safarihold," said Safari.

Safari also issued 20-million shares in July 2017 to a new investor, SA Corporate Real Estate, amounting to a R152m investment.

SA Corporate is a real estate investment trust (Reit) listed under the Real Estate diversified Reits sector on the JSE.

"It is one of the oldest and most established property companies in the South African market. 

The company features an attractive portfolio of property assets. 

With its diversified property portfolio, strong balance sheet and moderate gearing, Safari sees promising business synergy with SA Corporate in the near future," said Safari.

"We can grow to about R5bn in three years time from R2.4bn now," said CEO Francois Marais.