Apexhi - Amendments To The Terms Of Property Acqui
APEXHI PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/000238/06)
JSE Share code: APA ISIN: ZAE000033064
JSE Share code: APB ISIN: ZAE000033072
("ApexHi")
AMENDMENTS TO THE TERMS OF PROPERTY ACQUISITION AGREEMENTS
1. Introduction
Further to the announcement published by ApexHi on 20 February 2002 ("the
acquisition announcement") relating to the acquisition by ApexHi of a
portfolio of properties, Corpcapital Corporate Finance is authorised to
announce that the terms of two of the acquisitions have been amended and one
of the acquisitions has not been implemented, as set out below.
2. Revised transactions
ApexHi disclosed in the acquisition announcement that it had concluded
agreements:
2.1 to acquire the Centurion Value Mart for a purchase consideration of R32
750 000,00 50% of which was to be paid in cash and 50% of which was to be
paid by the issue of "A" linked units and "B" linked units. In terms of the
revised transaction, the purchase consideration has been reduced to R31 112
500 and is payable entirely in cash;
2.2 to acquire seven commercial properties from Mutual & Federal for an
aggregate purchase consideration of R60 000 000, R40 000 000 of which was to
be paid in cash and R20 000 000 of which was to be paid by the issue of "A"
linked units and "B" linked units. In terms of the revised transaction, the
purchase consideration has been reduced to R58 000 000 and is payable
entirely in cash; and
2.3 to acquire a commercial property from Princhurch Investments (Pty)
Limited for a purchase consideration of R18 276 923. The acquisition will
not be implemented as the board of directors of the vendor did not approve
the transaction and the agreement therefore did not become unconditional in
accordance with its terms.
3. Financial effects
The amendments to the acquisitions and the non-implementation of the
Princhurch acquisition will not have a material effect on the net asset
value, net tangible asset value, historical earnings and forecast
distribution per "A" linked unit and per "B" linked unit.
4. Borrowings
The increase in the cash component of the purchase considerations payable
in respect of the amended acquisitions has been financed out of long-term
borrowings from The Standard Bank of South Africa, with total borrowings
after implementation of the amended acquisitions amounting to R520 000 000,
representing approximately 33% of the total cost of ApexHi's portfolio.
The average interest rate payable by ApexHi in respect of total
borrowings is currently 12,81% and the interest rate has been fixed in
respect of 90% of the total borrowings.
5. Rationale
The amendments to the acquisitions are anticipated to be yield enhancing
in the future due to ApexHi's low cost of borrowings.
Johannesburg
10 May 2002
Corporate advisor and sponsor
Corpcapital
Corporate Finance
(a sponsor registered with the
JSE Securities Exchange South Africa)
Transaction support
Corpcapital
Transaction Support
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
