Absa to exit Pinnacle Point at huge loss

Absa will sell its entire shareholding in Pinnacle Point Properties for R150 million to the Trilinear Empowerment Trust, Pinnacle said yesterday. Pinnacle said on Monday Absa had agreed to sell its entire 39 percent stake in Pinnacle to Trilinear for R150m.

In January last year Absa acquired 28 percent in Pinnacle for R931.4m after clients defaulted on futures contracts. Absa will pay R95m upfront and the balance will be settled in two later tranches.

As a result of the deal, Trilinear would increase its shareholding in Pinnacle to about 48.4 percent. Absa had undertaken to implement the agreement by Monday.

Reuters

Posted at 09:09AM Feb 10, 2010 by Editor in Market  |  Comments[1]