JSE-listed British real estate investment trust Intu Properties [JSE:ITU] saw its share price fall by as much as 35% on Tuesday afternoon, after Link Real Estate pulled out of discussions on Intu's recapitalisation.
The about-turn from Link Real Estate followed an announcement on Monday talks were in progress regarding a proposed equity raise aimed at improving the status of Intu's balance sheet.
After closing at R3.20 per share on Monday - a jump of 24% - Intu shares were trading at R2.30 apiece shortly after 16:00 on Tuesday afternoon.
The company has struggled with billions of rands in debt, partly caused by failure to pay rent by major tenants such as UK-based retailers Debenhams and Arcadia.
The company released a shareholder notice on Tuesday stating that Link Real Estate would not be involved in the recapitalisation of Intu.
"Further to yesterday's announcement, Link Real Estate Investment Trust has informed Intu of its intention to no longer participate in a recapitalisation of the company," the shareholder notice said.
Intu's shareholder notice said the company would keep its shareholders updated and alert them to any changes to the current developments.
"Intu remains engaged with shareholders and potential new investors in relation to a proposed equity raise. The company will make further announcements in due course, as appropriate," the notice said.
Intu owns mall properties in the United Kingdom and Spain.