PK Investments defends its voluntary offer for MAS

THE corporate travails at JSE-listed East European property group MAS took another twist on Monday when shareholder PK Investments (PKI) insisted its “voluntary offer” is fair, and the concerns raised by the MAS independent board were not material.

- EDWARD WEST

PKI's offer follows its earlier attempt to get MAS to sell all its assets, but this was thwarted at a shareholders’ meeting. It also follows concerns expressed by nine minority South African institutional shareholders about aspects of governance in the MAS board.

These shareholders, which together own 15% of MAS, include Meago, Sesfikile Capital, Ninety One, Catalyst, Eskom Pension Fund, and Stanlib. South African REIT Hyprop also earlier withdrew a bid for MAS, because MAS's board and PKI allegedly failed to provide information.

PKI has offered cash of €1.40 per MAS share (R29.22) or a preference share option or a combination of both.

MAS's shares were trading 0.96% lower at R23.77 on Monday.

On the MAS board's view that there was a “perceived lack of regulator ‘proactive’ intervention” in the PKI bid, PKI’s directors said their offer “is fully compliant from a legal perspective.”