The two groups released two separate statements yesterday reinforcing their proposed sale agreement. This was despite the existence of two other offers for the same assets, which are a regional shopping centre and adjoining office block.
In reaction to Hyprop's initial offer of R304m, property loan stock company Acucap offered a consideration of about R345m, while insurance group Momentum has offered R320m in cash.
As Hyprop improved its initial offer to R320m, a price war for the two properties appeared to have been in the making.
Momentum has said it was considering upping its cash offer and Acucap said its offer stood.
Cenprop's spokesman said the group had through Delloite & Touche concluded a fair and reasonable assessment of the offers at hand, and had decided to recommend the Hyprop offer to shareholders.
A shareholders general meeting to be held early next year is to decide the fate of the two properties.
Hyprop fund manager Pieter Prinsloo said that 'judging by the trading price of Hyprop's linked units our offer is the best'. Hyprop had still reserved itself a right to improve its offer.
The Hyprop offer is payable by the issue of Hyprop linked units issued at R10,25 a linked unit. Hyprop's linked unit price closed at R11,50 a linked unit on the JSE Securities Exchange SA yesterday.
The Hyprop revised offer came with an option for Cenprop unitholders to elect a cash payment.
'We are confident that our proposal will go through as we have already received an undertaking from more than 50% unitholders of Cenprop to support our deal,' said Prinsloo.
He said the deal would boost Hyprop's assets to above R1bn.
This would further enhance the quality and diversification of Hyprop's portfolio of prime retail and office property investments, said Prinsloo.
The tradability of the Hyprop combined units was expected to improve due to the larger market capitalisation and the increased number of Hyprop combined units in issue, he said.
Business Day
Publisher: Business Day
Source: Inet Bridge
