|
HYPROP INVESTMENTS LIMITED - DISPOSAL OF PROPERTY LETTING BUSINESSES TO PRIMA
PROPERTY TRUST
Hyprop Investments Limited
(Registration No. 1987/005284/06)
Share code: HYP ISIN code: ZAE000003430
(the "company" or "Hyprop")
DISPOSAL OF PROPERTY LETTING BUSINESSES TO PRIMA PROPERTY TRUST
1. Introduction
Java Capital is authorised to announce that Hyprop has concluded an agreement
for the disposal of eight of the company"s smaller property letting businesses
("properties") to Prima Property Trust, with effect from 1 November 2003 for an
aggregate price of R66,5 million, to be settled by the payment of R43,225
million in cash and by the issue of 25 861 111 Prima units at an issue price
of 90 (ninety) cents per unit(the "disposal").
2. Terms of the disposal
The disposal is subject to various conditions precedent, including the approval
of Prima unitholders. Approval for the disposal from the Competition Commission
has been obtained.
3. Rationale
The disposal is in line with Hyprop"s strategy of disposing of smaller office
buildings and focussing on strategically located regional shopping centres.
It is the intention of Hyprop to dispose of the Prima units in the short- to
medium-term in a responsible and measured manner in order to maximise value for
Hyprop combined unitholders.
The cash received on the disposal and on the realisation of the Prima units will
be used to reduce borrowings.
4. Financial effects of the disposal
The pro forma historical earnings per combined unit of the disposal set out in
the table below have been prepared for illustrative purposes only to provide
information on how the disposal may have impacted on Hyprop. Because of its
nature, the pro forma historical earnings per combined unit may not give a fair
reflection of Hyprop"s financial position after the disposal or the effect of
the disposal on future earnings.
Before the After the
disposal disposal %
(cents) (cents) Change
Historical earnings per
combined unit 66.69 1 73.30 2 9.91
Notes:
1 The historical earnings per Hyprop combined unit as set out in the "Before
the disposal" column of the table are based on Hyprop"s unaudited results
for the six months ended 30 June 2003.
2 The historical earnings per Hyprop combined unit as set out in the "After
the disposal" column of the table is based on the assumption that the
disposal took effect on 1 January 2003, the Prima units were received on
that date, the cash portion of the disposal consideration was applied to
reduce borrowings and a distribution of 9.74 cents (including the special
distribution of 3.64 cents) was received on the Prima units for the period.
The interest saving on the reduction in borrowings was calculated at an
interest rate of 14%. The profit on the disposal of approximately R5,8
million (net of Capital Gains Tax) has been included in earnings per
combined unit. The net income before interest of the properties for the six
months ended 30 June 2003 has been excluded from the calculation.
The financial effects of the disposal on the historical headline earnings, net
asset value and net tangible asset value per Hyprop combined unit are not
significant and have therefore not been included in this announcement.
Rosebank
14 November 2003
Sponsor
Java Capital (Proprietary) Limited
Date: 14/11/2003 10:42:03 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
| 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. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
