Hyprop in uphill battle for control of SA Retail

Posted On Friday, 24 June 2005 02:00 Published by eProp Commercial Property News
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Hyprop Investments has adjourned its general meetings called to vote on the group's takeover bid for rival SA Retail, saying it would be doing further canvassing of SA Retail unitholders about its takeover prospects

Pieter PrinslooProperty loan stock Hyprop Investments on Wednesday adjourned its general meetings called to vote on the group's takeover bid for rival SA Retail, saying it would be doing further canvassing of SA Retail unitholders about its takeover prospects.

"The company agreed to postpone the meetings in order to canvass SA Retail unitholders about its prospects of securing a controlling interest in SA Retail, which Hyprop unitholders had indicated would influence their vote in respect of the takeover bid," Hyprop said in a statement.

This raised questions about Hyprop unitholders' support for the bid because Marriott, the manager of SA Retail, said last week that more than half of SA Retail unitholders would reject Hyprop?s offer.

Hyprop MD Pieter Prinsloo said the company would hold follow up discussions with SA Retail unitholders on the benefits of the proposed transaction with Hyprop.

But Colin Young, property sector head at Old Mutual Asset Management, which owns a 7,5% interest in SA Retail, confirmed the group had sent a formal letter to Hyprop's directors on Tuesday, indicating it would be voting against the takeover bid.

He said the group preferred supporting the Marriott group because of the possible future consolidation of Martprop and SA Retail.

"In our view this (possible consolidation) appears to be a distinctly better proposal than Hyprop's offer," he said. This would bring the total SA Retail unitholding against the Hyprop deal to more than 50%.

Marriott CEO Simon Pearse said it seemed the board of Hyprop did not have the support of its unitholders for its takeover plans.

 

Last modified on Tuesday, 06 May 2014 18:12

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