| Mon 29 Oct 2007, 8:00 | | HYP - Hyprop Investments Limited - Acquisition of |
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HYP
HYP
HYP - Hyprop Investments Limited - Acquisition of Sycom units and cautionary
announcement
Hyprop Investments Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1987/005284/06)
Share Code: HYP
ISIN Code: ZAE000003430
("Hyprop")
ACQUISITION OF SYCOM UNITS AND CAUTIONARY ANNOUNCEMENT
TERMS
Hyprop unitholders are advised that Hyprop has acquired, and/or concluded
agreements in terms of which it will acquire, in aggregate 64 214 985 units in
Sycom Property Fund ("Sycom") ("the Sycom units") from Old Mutual Life Assurance
Company (South Africa) Limited, Stanlib, Investec Listed Property Investments
(Proprietary) Limited, Redefine Income Fund Limited ("Redefine") ("the sellers")
and various other parties through the market. The Sycom units comprise a
strategic stake of approximately 31.3% of the total issued units in Sycom.
The consideration for the Sycom units comprises:
- the issue of 21 743 981 Hyprop combined units;
- the delivery of 5 571 924 linked units which Hyprop owns in Resilient
Property Income Fund; and
- the payment of R51 280 345 in cash.
Other than in respect of the Sycom units acquired through the market, the Sycom
units have been acquired with effect from 1 October 2007 on the basis that the
sellers will:
- remain entitled to the income distribution payable by Sycom for the 6 month
period ended 30 September 2007; and
- be entitled to 50% of the income distribution per Hyprop combined unit for
the 6 month period ending 31 December 2007.
RATIONALE FOR THE ACQUISITION OF THE SYCOM UNITS BY HYPROP
Sycom is a collective investment scheme which, inter alia, has investments in
quality shopping centres. The acquisition of a strategic stake in Sycom is in
line with Hyprop`s policy to invest in listed property securities with a retail
focus on a yield enhancing basis.
RELATED PARTY TRANSACTION
Given that each of Stanlib and Redefine is a material holder of Hyprop combined
units, the acquisitions from:
- Stanlib of 18 046 148 Sycom units to be settled by the issue of 7 218 459
Hyprop combined units ("the Stanlib acquisition"); and
- Redefine of 18 046 148 Sycom units to be settled by the issue of 7 218 459
Hyprop combined units ("the Redefine acquisition"),
are each regarded as a small related party transaction. As required in terms of
the JSE Listings Requirements, Hyprop will appoint an independent professional
expert ("the expert") to determine whether the terms of the Stanlib acquisition
and the Redefine acquisition are fair for Hyprop unitholders. If the expert
concludes that the Stanlib acquisition and/or the Redefine acquisition is not
fair to Hyprop unitholders, the respective acquisitions will be subject to
approval of Hyprop unitholders (other than Stanlib and/or Redefine, as the case
may be).
FURTHER ANNOUNCEMENT AND CAUTIONARY
A further announcement setting out:
- the financial effects of the acquisition of the Sycom units; and
- the expert`s opinion as to the fairness of the Stanlib acquisition and the
Redefine acquisition,
will be published in due course.
Hyprop combined unitholders are advised to exercise caution when dealing in
Hyprop combined units until the further announcement is made.
Rosebank
29 October 2007
Corporate advisor, legal advisor and sponsor
Java Capital (Proprietary) Limited
Date: 29/10/2007 08:00:01 Produced by the JSE SENS Department.
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