Redefine merger gets green light

Posted On Tuesday, 07 April 2009 02:00 Published by eProp Commercial Property News
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Madison unitholders have voted in favour of the acquisition of the company by Redefine Income Fund.

Brian AzizollahoffMadison unitholders have voted in favour of the acquisition of the company by Redefine Income Fund, it was announced on Monday.

This completes the last of the required investor approvals for the merger of Redefine Income Fund, ApexHi Properties and Madison Property Fund Managers.

The transaction will create one of the largest listed property companies in South Africa, with an estimated market capitalisation of R18 billion.

Redefine Income Fund linked unitholders approved the acquisition on April 2 2009.

Approvals from ApexHi A, B and C linked unitholders followed on April 3 2009.

"We are delighted that the acquisition has been approved by shareholders of all three companies. The only approvals still required are the regulatory approvals, including sanction of the ApexHi and Madison schemes of arrangement by the High Court (and the registration of the Court orders by the Registrar of Companies) and approval from the Competition authorities,"
said Brian Azizollahoff, CEO of Redefine Income Fund.

The new Redefine is set to benefit from increased earnings, a sound management base drawn from the three companies, increased international investor interest, better access to funding, cost savings and enhanced competitiveness, he added.

"ApexHi unitholders have, since the company's inception, benefited from a strategy which, first and foremost, focused on achieving increased distributions for unitholders. The expanded Redefine will be in an even better position to achieve this objective," noted Gerald Leissner, CEO of ApexHi.

Marc Wainer, executive director of Madison, pointed out that all unitholders would benefit from being part of a much larger fund, which would be ideally positioned to take advantage of opportunities which may arise in the local and international markets.

Furthermore, a possible re-rating, based on increased earnings, size and liquidity could increase Redefine's unit price.

"A lower yield would make further revenue-enhancing acquisitions easier to achieve," said Wainer.

The market capitalisation of the new Redefine could result in its inclusion in a number of stock exchange and property indices.

ApexHi and Madison linked unitholders will exchange their linked units for Redefine linked units at a swap ratio of 202 Redefine units for every 100 ApexHi A units, 246.8 Redefine units for every 100 ApexHi B units, 104 Redefine units for every 100 ApexHi C units and 90 Redefine units for every 100 Madison units.

The effective date of the acquisition of Madison and ApexHi linked units by Redefine is set for July 1 2009.

At the JSE close, Redefine shares were up 8 cents or 1.23% at R6.60, ApexHi had lost 18 cents or 1.35% at R13.19 and Madison had edged down five cents to R6.30.

Last modified on Wednesday, 23 April 2014 18:15

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