RDF
Redefine Income Fund Limited - Disposal by Redefine of linked units in Arnold
Property Fund Limited ("AProp") to Corovest
Redefine Income Fund Limited
(Registration No. 1999/018591/06)
Share code: RDF ISIN code: ZAE000023503
("Redefine")
Corovest Property Group Limited
(Registration No. 1998/002010/06)
("Corovest")
Disposal by Redefine of linked units in Arnold Property Fund Limited ("AProp")
to Corovest
Java Capital Limited is authorised to announce that Redefine has concluded an
agreement with Corovest in terms of which Corovest has acquired 50 million
linked units in A-Prop ("AProp units") at a price of 80 cents per unit from
Redefine"s operating subsidiary, Outward Investments (Pty) Limited.
The A-Prop units have been acquired by Corovest ex the right to participate in
the A-Prop claw-back offer and ex the distribution declared on 18 February 2004.
Post the disposal and the claw-back offer (in terms of which Redefine will take
up its pro rata share of claw-back units, anticipated to be approximately 18,4
million A-Prop units) Redefine will own a total of 21,2 million A-Prop units or
9.1% of the units in issue.
In consideration for the A-Prop units, Corovest has agreed to deliver a parcel
of securities in Hyprop Investments Limited, ApexHi Properties Limited, Allan
Gray Property Fund, Marriott Property Fund and Sycom Property Fund
(collectively, the "swap units") and pay a cash amount of approximately R1,7
million. The trade, which is split into two tranches, will be settled on 26
February and 5 March 2004.
Rationale
The disposal of the A-Prop units is in line with Redefine"s strategy of
consolidating its listed securities" exposure into a maximum of ten counters
whilst maintaining an optimal balance between counters in its listed securities
portfolio.
In order to implement the strategy set out above, Redefine has already sold off
its stake in a number of listed property companies. Since the A-Prop units no
longer form part of the core portfolio of Redefine and given that the swap units
represent holdings in a number of Redefine"s core investments, the sale
presented Redefine with the opportunity to rationally reduce its large exposure
to A-Prop at an acceptable price.
Corovest has acquired the A-Prop units from Redefine because of its strategic
interest in A-Prop.
Rosebank
26 February 2004
Sponsor to Redefine
Java Capital
Corporate and legal advisor to Redefine and Corovest
Java Capital
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