Currently, Rebosis owns a 32% stake in Ascension. If the acquisition goes through, Rebosis would have asset portfolio in excess of R11 billion and market capitalisation of just under R8 billion.
The transaction is subject to a number of suspensive conditions, including approval from Rebosis linked unitholders and Ascension A and B linked unitholders respectively.
In terms of the proposed offer, the Ascension board will propose to its linked unitholders two separate options.
Holders of Ascension B linked units will receive 23.549 Rebosis ordinary consideration shares for every 100 Ascension B linked units held.
For their part, holders of Ascension A linked units will receive 19.34236 Rebosis A ordinary consideration shares for every 100 Ascension A linked units held.
Rebosis will convert its current linked unit capital structure to an all-share capital structure and will create a new class of Rebosis A ordinary shares.
Commenting on the offer, Rebosis Founder and CEO Sisa Ngebulana said the company was pleased to announce this transaction following its acquisition of Ascension's management company last year.
"We believe that the sector has entered a cycle where REITS with smaller market capitalisation and less liquidity in the trade of their shares will increasingly be driven to consolidation and corporate action to best serve the interest of their tenants and investors," Ngebulana said.
"Despite the larger size, our assets will still only total 47 properties post the acquisition, which underscores our strategy of investing in high-grade, high-value assets located in strategic nodes, which makes it easier to manage optimally," he said.
"As a mid-cap fund we offer investors a unique value proposition. Around R3.2 billion of our portfolio consists of high-growth, regionally dominant retail assets, whilst the balance of the fund comprises mainly single tenanted commercial offices with a sovereign underpin," he adds.
"Since the acquisition of Ascension's management company, we have been very hands-on in the management of the Ascension portfolio and are excited about the continued value unlock in this regard," Ngebulana said.
"Going forward we will continue to act on yield enhancing, strategic consolidation and other pipeline opportunities, building on Rebosis' strong fundamentals and careful management to grow our distributions and long-term capital appreciation for shareholders," he said.
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