October 20, 2017 / 4:14 PM / a year ago

UPDATE 1-South Africa's Group Five allows Greenbay's $116 mln bid to lapse

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JOHANNESBURG, Oct 20 (Reuters) - South African construction company Group Five let a 1.6 billion-rand ($116 million) offer from Greenbay Properties for some of its assets lapse at 1500 GMT, Group Five said on Friday, causing its shares to fall more than 14 percent.

On Monday, Group Five said Greenbay had offered to buy Group Five’s European assets and gave it until Oct. 20 to accept the offer. But Group Five said the offer undervalued its assets compared with possible rival bids.

Shares in Group Five closed down 14.40 percent at 10.70 rand.

Group Five said it had let the offer lapse because it would take too much time for an independent expert to give an opinion on the offer and for the independent board to consider that opinion.

The company, which posted an annual loss in August, said it had approached Greenbay to discuss timing and its preliminary observation that the offer undervalued its assets. Greenbay said it would not extend the deadline.

Group Five said it was still getting expressions of interest for the European assets and other assets within the group. ($1 = 13.7372 rand) (Reporting by Nqobile Dludla; Editing by James Macharia, Larry King)

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