There has been a high degree of consolidation in South African listed property since last year.
In December‚ Arrowhead bought 31.7% of Vividend Income Fund's linked units from Coronation Fund Managers‚ in a deal valued at about R430m. Chief operating officer at Arrowhead‚ Mark Kaplan‚ said that Arrowhead had taken the next step and put forward a scheme of arrangement to acquire the remaining units.
"In a firm intention announcement on the JSE's Sens‚ unit holders were informed of the terms of the scheme of arrangement and‚ if the scheme is passed‚ Arrowhead proposes to buy all the issued linked units in Vividend for not less than 0.374 Arrowhead A and 0.374 Arrowhead B units for every Vividend unit.
"Stanlib‚ which controls about 60.2m Vividend units‚ representing about 22% of Vividend's issued units‚ has irrevocably undertaken to vote in favour of all resolutions necessary to approve the scheme‚" Arrowhead said in a statement.
If supported by Vividend unit holders‚ this transaction would increase Arrowhead's market capitalisation to about R5.5bn and its portfolio to about R6bn.
"This has been a smooth process since last year. We like the retail assets that Vividend owns and are confident this deal will be successful‚" Kaplan said.
"We are pleased that the Vividend transaction has had the support of the Vividend management and board. The transaction is expected to create certainty and unlock significant value for Vividend shareholders by providing them with access to a larger‚ more liquid fund with faster growing distributions‚" Arrowhead Properties chief executive Gerald Leissner said.
Vividend's retail properties include Beaufort West Shopping Centre‚ Rosettenville Junction‚ Westgate Mall and Clearwater Crossing.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
