MDN - Madison - Acquisition of 40% of Corovest Fun
MDN
MDN
MDN - Madison - Acquisition of 40% of Corovest Fund Managers limited
Madison Property Fund Managers Holdings Limited
Registration number 2003/021772/06
Madison Property Fund Managers Limited
Registration number 2005/021874/06
("Madison" or "the group")
Share Code: MDN & ISIN Code: ZAE000080560
ACQUISITION OF 40% OF COROVEST FUND MANAGERS LIMITED ("CFM")
It was announced on 7 August 2007 that Madison had reached agreement to acquire
(the "acquisition") 40% of CFM (the management company of CIREF - the Coronation
International Real Estate Fund) from Osiris Property Services Limited with
effect from 1 July 2007. The acquisition was conditional upon approval from the
South African Reserve Bank.
The approval has been obtained and the acquisition is unconditional.
The purchase consideration of R100.15 million will be settled as follows:
- R97 370 000 by the issue, pursuant to a vendor placement, of 11 128 000
Madison linked units at a price of R8.75 per Madison linked unit; and
- the balance of R2 780 000 in cash.
The Madison linked units are being issued ex the entitlement to the 36 cents
distribution for the 6 months ended 30 June 2007.
The pro forma effect of the acquisition on the historical net asset, net
tangible asset, historical earnings, headline earnings per linked unit are not
significant.
It is anticipated that the effect of the acquisition will be earnings enhancing
in financial year 2008.
The acquisition is reflective of Madison`s strategy to expand its asset
management activities into new markets in which suitable opportunities are
presented.
Rosebank
27 August 2007
Sponsor
Java Capital (Proprietary) Limited
Date: 27/08/2007 10:49:01 Produced by the JSE SENS Department.
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