Vukile moves step closer to MICC prize

Posted On Tuesday, 26 October 2004 02:00 Published by eProp Commercial Property News
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Rival ApexHi not about to give up yet.

Laurence Rapp

Listed property loan stock company Vukile Property Fund has moved one step closer to its goal of acquiring all of MICC Property Income Fund's linked units with the announcement on Friday that it had acquired a 17,6% interest in the property fund.

This sets the stage for an interesting battle with rival listed property loan stock company ApexHi Properties, which wants to acquire all of MICC's property assets.

ApexHi is not going to throw in the towel and is busy courting various MICC unitholders in its efforts to get its bid accepted.

Vukile said it had acquired Sanlam Investment Management's 11778155 MICC units in a relatedparty transaction.

Sanlam Life Insurance is a Vukile unitholder, so in terms of the listing requirements of the JSE Securities Exchange SA, the acquisition requires the approval of the Vukile unitholders, excluding Sanlam and its associates, in a general meeting.

Vukile said the purchase consideration would be settled by the issue of 14133786 new Vukile units in exchange for Sanlam Investment Management's MICC units.

Subject to JSE approval, the new Vukile units would be listed on or about November 30 this year.

Vukile said that in addition to the acquisition of the 17,6% interest in MICC, Vukile had received acceptances for its takeover bid from investors holding 33,1% of MICC's units.

But ApexHi executive director Deon Feinblum said yesterday that they spent the "whole of Friday" meeting with MICC unitholders.

"The shareholders aren't enamoured with the Vukile offer, and they are very keen to entertain the ApexHi offer once full details of both offers are available," said Feinblum.

He said ApexHi was still intent on purchasing MICC's property assets, provided there was enough support from shareholders.

Vukile CEO Gerhard van Zyl said their bid for MICC was still on track and that "nothing has changed".

Last week ApexHi was up in arms saying that it had received an inadequate response from the MICC board to its takeover bid for MICC's property portfolio.

ApexHi also said that MICC had not advised its unitholders of the alternate ApexHi offer and it had been forced to publish its own announcement detailing its offer.

The consideration in ApexHi's offer would be R896,3m, to be settled with R502,4m in cash and the balance by the issue of 23,4-million ApexHi "A" units and 23,4-million ApexHi "B" units at a combined issue price of R16,80.

ApexHi's unique unit structure offers investors the opportunity to invest in two separate unit structures, its "A" and "B" units, which offer different returns at different levels of risk.

ApexHi says the R502,4m in cash would be used in the settlement of all of MICC's debt.

ApexHi's offer translates into 35 ApexHi combined units for every 100 of MICC's units.

There is also speculation that ApexHi could change aspects of its offer to make it more attractive to MICC unitholders.

Vukile is offering 12 Vukile linked units for every 10 MICC linked units, and says the implied value of the offer is 600c a unit.

Last modified on Wednesday, 14 May 2014 12:08

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