| Tue 3 Mar 2009, 14:00 | | VKE - Vukile - The proposed extension of the existing asset management |
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VKE
VKE
VKE - Vukile - The proposed extension of the existing asset management
agreement
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE code: VKE NSX code: VKN ISIN: ZAE000056370
("Vukile")
The proposed extension of the existing asset management agreement with Sanlam
Properties (Proprietary) Limited ("Sanlam Properties") and the discussions
concerning the proposed acquisition by Vukile of the asset management
business of Sanlam Properties specific to the Vukile property portfolio, as a
going concern
Further cautionary announcement
1. Introduction
Vukile unitholders are referred to the cautionary announcements dated 4
December 2008 and 15 January 2009. Nedbank Capital, a division of
Nedbank Limited, is authorised to announce that Vukile`s board of
directors has, in-principle, approved the decision to internalise
Vukile`s asset management services, currently performed in terms of a
contract with Sanlam Properties ("the Vukile Asset Management
Contract").
In this regard, Vukile and Sanlam Properties have entered into
discussions ("the Discussions") with regard to the proposed acquisition
by Vukile from Sanlam Properties of the IT infrastructure and software,
furniture and equipment and the take-on of certain employees directly
related to the asset management function of the Vukile property
portfolio as a going concern ("the Vukile ManCo Acquisition").
2. The Extension
The initial five-year period of the Vukile Asset Management Contract is
scheduled to expire on 31 March 2009. To allow the discussions to be
concluded Sanlam Properties have in principle agreed to extend the
Vukile Asset Management Contract ("the Extension") for a maximum period
of six months, as opposed to a further five-year period, subject to
Vukile unitholder approval.
In terms of paragraph 13.40(a) of the Listings Requirements of the JSE
Limited, the Extension requires the approval of the majority of Vukile
unitholders (excluding Sanlam Properties and its associates). In this
regard, a circular containing details of the Extension will be posted to
Vukile unitholders within 28 days of this announcement.
3. Further cautionary announcement
Until such time as the Discussions have been finalised, and detailed
terms and conditions of the Vukile ManCo Acquisition have been
announced, unitholders are advised to continue to exercise caution when
dealing in their Vukile linked units.
Roodepoort
3 March 2009
Investment bank, corporate adviser JSE sponsor
and transaction sponsor - Barnard Jacobs Mellet
- Nedbank Capital, a division of Corporate Finance
Nedbank Limited - (Proprietary) Limited -
Attorneys NSX sponsor
- Webber Wentzel - - IJG Securities
(Proprietary) Limited -
Date: 03/03/2009 14:00:03 Produced by the JSE SENS Department.
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