The long-running saga involving MICC Property Income Fund and rivals ApexHi Properties and Vukile Property Fund appears to be drawing to a close.

All indications are that ApexHi, which owns 24% of MICC, and Vukile, which has a 75% stake, are going to hammer out a deal that will see MICC unwound, delisted and incorporated into Vukile.

ApexHi said on Monday that it had increased its interest in MICC through a property deal with MICC unitholder Oasis.

ApexHi said it sold its Protea Assurance building in Cape Town to Oasis Crescent Property Fund for R44m, which would be settled by R20m in cash and Oasis's 5% interest in MICC.

The company said the increased stake - from 19% to 24% - put it in a stronger position to negotiate with Vukile and MICC to acquire MICC properties in exchange for its interest in MICC.

Vukile and MICC issued a joint cautionary announcement yesterday saying they had entered negotiations over "the acquisition by Vukile of the linked units in MICC which it does not already hold".

Vukile and MICC said that if the proposed transaction was concluded, Vukile would hold 100% of MICC's issued capital.

Vukile CEO Gerhard van Zyl declined to comment.

ApexHi CEO Gerald Leissner said the company was willing to negotiate with Vukile and MICC. But he said concluding a deal to sell ApexHi's stake in MICC depended on the properties it would acquire from MICC.

Leissner said Vukile had to make an offer to all the outstanding unitholders in MICC.

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Publisher: I-Net Bridge
Source: I-Net Bridge