Buyout will lead to iProp winding up.

Posted On Wednesday, 22 January 2003 10:01 Published by eProp Commercial Property News
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Property group iProp will disappear entirely if the R83,9m (550c a share) management buyout proposal announced yesterday goes through.

Property-Housing-ResidentialiProp became too small following the unbundling of its investment property assets into a new formation called iFour last year.

The unbundling left the company with lean property development opportunities.

The group released a statement yesterday, saying it received an offer from management that would result in the disposal of all its assets and liabilities as a going concern.

Using a vehicle called Clidet No433, the management team driving this buyout consists of MD Petro Heydenrych, marketing director Richard Bennet, financial director Coleen du Preez and development manager John Martin.

The group said the rationale for the buyout was that iProp was a small and illiquid company trading at a deep discount to its net asset value. It said the offer from Clidet represented a 75% premium to the average closing iProp share price on October 18 last year the date of publication of the first cautionary announcement.

The offer was at a 64% premium to the average closing iProp share price from June 12 last year to January 20 this year the period subsequent to the iFour transaction.

The offer also represent a discount of 54% to iProp's net asset value which represents a 32% reduction in the historical discount to the company's net asset value.

The group said that subject to the approval of iProp shareholders the board intended to delist iProp from the JSE Securities Exchange SA and voluntarily wind it up.

iProp was formed 35 years ago and went through a number of changes from an operation with mining assets, gold recovery, land rehabilitation, land development and property investment.

The group's share price closed unchanged at 380c yesterday.

Last modified on Monday, 05 May 2014 11:19

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