The fund will acquire 30 percent interest in the ordinary shares and shareholder loans held in Attacq.
Attacq has entered into a non-binding term sheet with the Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation. The deal will see GEPF acquire a 30 percent interest (R2.8 billion) in the ordinary shares and shareholder loans held in Attacq Waterfall Investment Company (AWIC), a wholly-owned subsidiary of Attacq and the owner of the Waterfall City development.
“We are truly excited about this milestone transaction for Attacq and Waterfall City. It also provides the GEPF with a unique investment opportunity in the co-ownership of a world-class city,” says CFO Raj Nana.
He explains that, once the deal is implemented, Attacq will see its gearing reduce from 37.2 percent to about 24 percent on a pro forma basis, providing the balance sheet to develop Waterfall City. “Attacq’s capital structure will also be optimised, resulting in a reduced cost of capital, thereby enhancing returns for Attacq’s shareholders. It’s a win-win for all stakeholders.”
The proceeds of the sale will be used to optimise the capital structure of both AWIC and Attacq, de-leveraging the group’s balance sheet, enhancing the liquidity position of Attacq and improving investment capacity.
The transaction is still subject to the fulfilment of certain conditions.