Acucap not happy with handling of its offers.

Posted On Monday, 03 March 2003 10:01 Published by eProp Commercial Property News
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LISTED property fund Acucap has accused Property Fund Managers, Cenprop's asset management company, of not accurately reflecting its offers to Cenprop unit holders.


Property-Housing-ResidentialAcucap has made two offers to purchase certain property assets of Cenprop after Cenprop's decision to wind up its operations.

Acucap has offered R350m for The Mall of Rosebank and its adjoining office block, JHI House, and an alternative offer of R395m for the entire Cenprop portfolio.

There are two other offers for The Mall and JHI House. One is a R320m offer from Hyprop and the other is a R320m cash offer from insurance group Momentum.

Acucap's management released a statement yesterday saying "the group believes that its offers have not been accurately reflected in Cenprop's circular".

The statement said Acucap wished to provide Cenprop unit holders with details of its offers to enable unit holders to consider the alternatives available.

Acucap said the offer has not lapsed as is stated by the Cenprop circular. It remained open until April 30 and the terms of the offer include a provision giving Acucap the right to increase the cash component of its offer from 50% to 75%.

Acucap said it had exercised this right. Therefore, the purchase consideration was payable up to a maximum of 75% in cash and not 50% as stated in the Cenprop circular, the statement said.

The balance was payable in Acucap's linked units to be issued at R10 a linked unit.

Cenprop's fund manager, Charles Ryan a Property Fund Managers employee said: "In principle we have to disagree with their assertion." He declined to comment further, saying that a detailed announcement would be released in due course.

Property Fund Managers have been accused of favouring Hyprop's offer for reasons other than shareholder value enhancement.

Last modified on Thursday, 08 May 2014 18:00

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