Growthpoint, Primegro merger to set benchmark

Posted On Thursday, 29 May 2003 02:00 Published by eProp Commercial Property News
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Durban - Investec Property Group (IPG) yesterday announced the R2.5 billion merger of Growthpoint and Primegro, which would create the largest loan stock company on the JSE Securities Exchange.

Sam Leon Investec Property FundWith combined assets of R5 billion and a market capitalisation of R3 billion, the merged Growthpoint will be among the top 50 listed companies.

The merger is, however, subject to approval by the Competition Commission, shareholders and the JSE's regulations committee.

Sam Leon, the head of IPG, said the merged fund would comprise about 17 percent of the combined market capitalisation of the property unit trust and property loan stock sectors.

"This will set new benchmarks for listed property funds, creating critical mass, higher liquidity and a spread of risk both sectorally and geographically," he said

Primegro, which will act as the facilitating party, will sell its properties into Growthpoint.

The acquisition price will be settled partly in cash and partly by Growthpoint issuing 184.7 million new-linked units at R5.30 each, representing a transaction ratio of 1.25 Growthpoint units for every Primegro unit.

Leon said Primegro would be voluntarily wound up. The proceeds of the deal would be distributed to Primegro linked unit holders before the liquidation.

Growthpoint closed up 10c at R5.35 yesterday. Primegro closed untraded at R7.10.

Last modified on Monday, 05 May 2014 10:27

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