Balwin has a secured pipeline of 26,334 apartments across 32 developments over more than 10 years.
Shares in Balwin Properties jumped more than 9% after it said its founders and the Public Investment Corporation would delist the developer in a deal called Project Beacon as it was trading at a discount.
Balwin’s share price climbed from R3.84 to R4.19 after the announcement was released to the market on Wednesday. This morning, they had cooled somewhat, trading at R4.15.
The proposed deal would see a newly created company called Bidco buy out remaining shareholders at R4.35 per share, valuing the company at R2.3 billion. Balwin is currently worth R2.16 billion on the JSE.
Bidco is controlled by Balwin CEO Stephen Brookes through Volker Holdings. The consortium also includes Balwin MD Rodney Gray, GRE Africa and the Public Investment Corporation acting on behalf of the Government Employees Pension Fund.
