Absa offloads Pinnacle Point

Sells its 39% stake to Trilinear. South Africa's property developer Pinnacle Point (JSE:PNG) said on Tuesday Absa (JSE:ASA) had agreed to sell its entire 39 percent stake in Pinnacle to Trilinear for 150 million rand.

The property developer said Absa, South Africa's biggest retail bank, would pay 95 million rand upfront and the balance would be settled in two later tranches.

In terms of the agreement, Absa would subscribe 95 million rand worth of shares for cash and convert 125 million rand debt into shares.

As a result of the deal, Trilinear would increase its shareholding in Pinnacle to about 48.4 percent.

Pinnacle said Absa had undertaken to implement the agreement by no later than Feb 15.

In January 2009, Absa acquired stakes in four JSE-listed firms for 1.4 billion rand after client defaults on futures contracts, resulting in minor losses in its full-year results.

The bank bought a 28 percent stake in Pinnacle Point Group for 931.4 million rand, a 16 percent stake in Blue Financial Services (JSE:BFS) for 389.9 million rand, and a 10 percent stake in ConvergeNet Holdings (JSE:CVN) for 86.2 million rand.

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