TRIBUNAL APPROVES MERGER IN THE BROAD MARKET FOR RENTABLE RESIDENTIAL PROPERTY
The Tribunal has approved, without conditions, the merger whereby AFHCO Holdings (Pty) Ltd (“AFHCO”) will acquire sole control of Calgro M3 JCO (Pty) Ltd (“JV Co”). Post-merger, AFHCO will control the residential letting enterprise known as The Falls Lifestyle Estate, through the Falls Rental Company which is a wholly owned subsidiary of JV Co.
Acquiring firm
AFHCO is a wholly owned subsidiary of SA Corporate Real Estate Ltd (“SACREL”). SACREL is not controlled by any one firm. AFHCO develops and owns commercial and residential properties in Gauteng. Of relevance to this transaction is the acquiring group’s residential sectional title units located in Northriding, Randburg. These units are leased or sold to private customers.
Target firm
JV Co is controlled by Calgro M3 Real Estate (Pty) Ltd ("Calgro"). JV Co controls The Falls Rental Company (Pty) Ltd (the “Falls Rental Company’’) which comprises residential sectional title units. JV Co’s only activity is the development and rental of the target properties situated in Wilgeheuwel, Roodepoort.
Commission’s analysis and recommendation
The Commission found that the proposed transaction does not raise any competition concerns. In addition, the Commission found that the merger is unlikely to result in any job losses or raise any other public interest concerns. It therefore recommended to the Tribunal that the merger be approved without conditions.
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