The BPOPF, which is the country’s largest pension fund, held 38.8% of RDC Properties as at December, being the single largest shareholder. The pension fund also held nearly 33% of PrimeTime as at August last year, being the largest shareholder as well.
“The pension fund wields the power in the deal and in fact, will play the role of a kingmaker,” an analyst told BusinessWeek.
The move comes as RDC, which has the largest investment property portfolio on the Botswana Stock Exchange at P6 billion, seeks deals to add onto to its assets spread across seven countries. PrimeTime, meanwhile, has assets of more than P1.7 billion, with 63% of the portfolio in Botswana.
In a series of announcements to the stock exchange RDC Properties announced that engagements with PrimeTime properties are ongoing towards a partial offer that will be made directly to the latter’s unitholders.
“It should be noted that engagements with major unitholders remain ongoing and that the appropriate corporate action and terms of any potential partial offer to each of the unitholders of PrimeTime remain under active consideration,” reads a statement from RDC properties.
In a more recent update to analysts, RDC said the PrimeTime deal offered upside for both sets of shareholders.
“The management believes this would result in significant synergies for the combined group and for both sets of unitholders,” the group said.
While no details of the offer from RDC have been made public, the property group will likely offer PrimeTime’s shareholders a premium based on the average trading price of their shares. PrimeTime’s shares are about five percent down this year and by Wednesday were trading at P1.65. In the past five years, PrimeTime’s shares have shed about 45% in value, a drop that may have made them a target for a partial takeover.
RDC Properties, meanwhile, was trading at P2.40 on Wednesday. The group’s shares have risen by just over nine percent in the last five years.
In its most recent update, PrimeTime Properties confirmed that an acquisition was pending, but said there had been no formal offer from RDC.
“The PrimeTime Board has still to date not received any offer from RDC, and should an offer be made, the PrimeTime Board shall assess any such approach on its respective merits and in line with its commitment to safeguard and enhance the value for all stakeholders, and in accordance with the BSE listing requirements.,” reads the statement.
On Wednesday, PrimeTime board chair, Paul Masie, confirmed that the property firm is yet to formally receive an offer from RDC. He did not respond to further BusinessWeek questions by the time of going to Press.
For his part when quizzed about the transaction, RDC Properties’ country manager, Letsweletse Ramokape, referred BusinessWeek to the BSE’s website.
“You should talk to Primetime Properties. What we want to do as RDC Properties is in the public domain,” he said.
According to RDC Properties’ 2023 annual report, during the reporting period, the group’s investment and property portfolio grew by 1.3 percent to P6 billion despite the sale of P138 million in less strategic assets during the year. The group’s portfolio remained positive with the easing of inflation and uptick in demand across all sectors. The group said it was evaluating interesting investment opportunities in assets in the green economy as this is a sector in which it would like to be increasing its footprint.
Meanwhile, PrimeTime, since listing in 2007, has expanded its property portfolio to 29 properties located in Botswana, South Africa, and Zambia, totalling 122,320m2 of lettable office, retail, and industrial space.
