Listed property loan stock company ApexHi Properties has released details of its proposed R150m empowerment transaction, saying Clearwater Capital and a broad-based empowerment trust would be acquiring a 10% interest in the company.

ApexHi announced in May it would be introducing new C class units to facilitate the deal.

In terms of the new C unit structure, all existing ApexHi A and B unitholders would 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 existing unitholders.

In term of the empowerment deal, the existing unitholders will be obliged to sell 30% of their C units to the empowerment partners at R2 a unit.

ApexHi CEO Gerald Leissner said Clearwater Capital, an investment company owned by the Mehta family in KwaZulu-Natal, would be acquiring half the empowerment stake available, while the other half would go to a broad-based ownership scheme. Clearwater Capital would own 5% of ApexHi.

Leissner said that unitholders would vote on the proposed transaction at a meeting on September 11, and that the new C units would be listed on October 9 this year.

He said the Mehta family was involved in a number of different business interests including property.

Leissner said the Mehta family was also an empowerment partner of property asset managers Madison, which manages ApexHi, Redefine Income Fund and Hyprop Investments.

He said they were happy to have the Mehta family on board.

Leissner said there were two other empowerment transactions that could be announced over the next two months to increase the empowerment component in ApexHi.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge