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Unitholder rejects Vukile offer for MICC

Posted On Tuesday, 14 November 2006 02:00 Published by eProp Commercial Property News
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The decrease in distribution growth is due to MICC selling off properties worth about R200m

Gerhard van ZylListed property loan stock company MICC Property Income Fund on Monday reported a distribution of 40,5c a linked unit for the six months to September, a decrease of 10% over the comparable period last year.

Gerhard van Zyl, CEO of Vukile Property Fund, which owns 98,9% of MICC's linked units, said the decrease in distribution growth was due to MICC selling off properties worth about R200m.

MICC was expected to have been absorbed into Vukile by now but one unitholder, who owns 0,01%, is holding up the process.

Earlier this year Vukile invoked section 440K of the Companies Act to compulsorily acquire the remaining linked units in MICC after most unitholders have accepted Vukile's takeover offer of R8,84 for each MICC linked unit.

But one unitholder, who owns less than 10,000 units, has rejected the takeover offer and filed an application with the high court opposing Vukile?s notice to invoke section 440K.

Vukile said a date for the hearing of the application had not yet been determined.

The company said the listing of MICC's linked units on the JSE and the Namibian Stock Exchange was not terminated on Friday May 5 but would continue to be suspended until further notice. Van Zyl said the investor was holding up the delisting and final unwinding of MICC.

Vukile has had a tough time during the long journey to acquire most of MICC?s linked units. Rival company ApexHi Properties almost quashed an initial takeover bid for MICC by Vukile in 2004 by launching a counter-bid for MICC.

Meanwhile, Vukile said the sale of the properties by MICC had also reduced revenue.

But this reduction was expected to be offset by savings in finance costs.

The overall vacancy level of the MICC portfolio as a percentage of gross rentals had decreased from 6,1% on September 30 last year to 5% on September 30 this year.

MICC's net asset value for each linked unit attributable to equity holders of MICC increased to 824c from 722c for the corresponding period last year.

Last modified on Monday, 28 April 2014 13:01

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