Lyons sells portfolio of properties

Posted On Friday, 30 April 2004 02:00 Published by eProp Commercial Property News
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Financial solutions company Lyons Financial Solutions Holdings' (LYS) Lyons Corporate Lease Fund (LCLFL) has disposed of a portfolio of properties to Metboard Properties (MPL) and Growthpoint Properties (GRT) for R176.4 million and R288 million respectively.

Property-Housing-ResidentialThe total disposal consideration is R464.4 million.

LCLFL is a company in which Lyons holds a 45% equity interest, with the remaining 55% of the shares in LCLFL being held by The Rainmakers Investment Trust, of which Lyons is the 100% beneficiary.

Explaining the rationale for the disposals, Lyons said that it believes that the conclusion of the disposals is a fundamental step in the company's strategic direction. It will sufficiently capitalise Lyons to pursue further opportunities in the property and financial services sector and enable it to continue to build itself into an investment management and trading operation focused on the real estate and specialised finance sectors of the property industry.

Lyons will use the proceeds to settle long and short-term debt, which will then place it in a position to take advantage of opportunities in the property sector including property development, trading and its specialised finance business.

LCLFL will dispose of a portfolio of 11 properties to Growthpoint for R287.95 million, to be settled by R57.59 million through the issue of 9 394 800 new Growthpoint linked units at a price of R6.13 per linked unit and the balance of R230.36 million in cash.

LCLFL will dispose of a portfolio of 22 properties to Metboard for an aggregate purchase consideration of R176.355 million, to be settled by R35.271 million through the issue of 11 341 191 Metboard linked units at a price of R3.11 per linked unit and R141.084 million in cash.

The disposals are subject to approval by shareholders and the regulatory authorities. The effective date of the disposals is 1 July 2004.

As Lyons no longer complies with the requisite shareholder spread and free-float requirements of JSE's Listings Requirements, an application was previously made for the delisting of Lyons shares. The JSE has approved the delisting of Lyons' shares from the Financials - Speciality and Other Finance sector of the JSE lists from the commencement of business on Tuesday, 25 May 2004.

The Lyons board has appointed Grant Thornton Kessel Feinstein as independent financial adviser on the disposals. The substance of its advice and the recommendation of the Lyons board will be communicated to Lyons shareholders in due course.

It is anticipated that a further announcement including the financial effects of the disposals, GTKF's opinion and the recommendation of the Lyons board will be published in due course.

Lyons shareholders were advised to continue to exercise caution when dealing in their shares until a further announcement regarding the disposals is made.

Last modified on Saturday, 10 May 2014 08:22

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