YOUR story, Questions arise on price of Colliers RMS stake (March 8), gives the impression that the consortium formed by MuAfrika to buy 50% of Colliers's property and facilities management business rushed into the deal and overpaid.
Your last paragraph also implies that we might be a sham black empowerment company.
Neither are true and here is why: the lowest offer made for 100% of Colliers RMS was R18m and the highest was R42m, not the R7m claimed in your article.
MuAfrika constantly analyses individual industries for the black empowerment potential. Our research and analysis is thorough and professional. Last year, we identified property and facilities management as having potential, primarily because both government and corporations want to outsource these functions and give preference to empowerment companies.
In our view, Colliers offered the best combination of capabilities it is the only independent property service company with a full-scale facilities operation, national and international reach and brand name. We approached Colliers, which made it clear it only wanted a genuine black empowerment partner.
We then formed our present consortium and started negotiations with the company.
We undertook a due diligence and found that a price tag of R9m for 50% was fair value. A competing black empowerment group offered them the same, but Colliers signed with us.
You could hardly call a threemonth process rushed. Moreover, RMB Properties and Broll Properties approached Colliers. Colliers did not find their proposition acceptable as it lacked a black economic empowerment component. They did not back off as was claimed in your article.
With the active participation of each of the consortium partners we expect to build the new company quickly, profitably and substantially.
For instance, we will have a head start on hospital management and facilities contracts. We will get our investment back quickly and excellent returns after that.
If your newspaper wants to question black empowerment deals, clearly its right and duty, please be fair.
Deena ChettyCEO, MuAfrika Bernard KaiserExecutive directorColliers RMS
Publisher: Business Day
Source: Business Day
Story on Colliers gives wrong impression
Posted On Friday, 22 March 2002 02:00 Published by eProperty News
YOUR story, Questions arise on price of Colliers RMS stake (March 8), gives the impression that the consortium formed by MuAfrika to buy 50% of Colliers's property and
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