ApexHi has announced the details of a proposed BEE transaction, which will see Clearwater Capital and a broad based BEE ownership scheme secure 10% of the voting rights in ApexHi, if current unit holders vote in favour of the proposed new C unit.

ApexHi recently announced its intention to introduce a new C unit to the innovative unit structure to facilitate an achievable BEE transaction. ApexHi CEO, Gerald Leissner, explains that all existing unit holders will receive 45 C units for every 100 A units held, and 55 C units for every 100 B units held, at no cost to the current unit holder. To facilitate the BEE transaction, unit holders will be obliged to sell 30% of their C units to the BEE partners at a unit price of R2 per unit.

Of the 74 980 920 ApexHi C units to be acquired as part of the BEE transaction, 50% will be acquired by Clearwater Capital, a black owned and controlled investment company owned and controlled by the KwaZulu-Natal based Mehta family. The company brings established business and property expertise to the deal and is investing R10-million in equity in the BEE transaction.

The other 50% of the shares allocated to the BEE transaction will be acquired by a broad based ownership scheme. The proposed beneficiaries of this scheme are the Cida Empowerment Fund (Cida), the DEC Investment Holding company (DEC), MaAfrika Tikkunn, Makhulong A Matala and the Soul City Broad Based Empowerment Company.

“One of ApexHi’s key objectives in selecting the BEE shareholders was to ensure a significant proportion of the economic benefits that flow from the transaction would contribute to those communities and persons who have historically been, and continue to be, the most disadvantaged members of the South African economy,” says Leissner.

Leissner says bank funding will be provided  for monies required by the BEE scheme and Clearwater Capital to acquire the C units. “To facilitate the transaction, ApexHi has agreed to guarantee the repayment of BEE funding to the extent that it relates to the acquisition of the debenture portion of the C units,” he says.

“This introduction of the C unit makes the BEE transaction affordable. Our market cap currently exceeds R6-billion, and a 10% equity stake would require a substantial investment of more than R600-million by a BEE partner. The cost of acquiring 30% of the C units based on R2,00 per unit would be R150-million, and entitles the BEE consortium to 10% of the total voting rights.

Unit holders will meet to vote on the proposed transaction on 11 September, and following a court hearing to sanction the scheme, the new C units will be listed and traded from 9 October 2006.

 
Ends

For further information, please contact:
 
Gerald Leissner
ApexHi Properties
Tel: (011) 283 0150