ARNOLD PROPERTY FUND LIMITED - CAUTIONARY ANNOUNCEMENT
Arnold Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2001/011887/06)
Share code: ARP ISIN code: ZAE0000031720
(`A-Prop`)
CAUTIONARY ANNOUNCEMENT - PROPOSED ACQUISITION OF A PROPERTY PORTFOLIO FROM
MOMENTUM PROPERTY INVESTMENTS (PROPRIETARY) LIMITED (`MOMENTUM`)
Unitholders are advised that A-Prop has embarked upon a strategy aimed at re-
positioning the fund with a view to enhancing both the size and the quality of
the earnings of the fund. To this end A-Prop has entered into negotiations with
Momentum which, if successfully concluded, will result in the acquisition by
A-Prop of a portfolio of properties with a value of approximately R312 million
in consideration for the allotment and issue by A-Prop of new A-Prop linked
units to Momentum(the `proposed transaction`).
Given that the acquisition consideration is to be discharged by way of the
allotment and issue of new A-Prop linked units, the proposed transaction, if
implemented, is anticipated to give rise to a change in control of A-Prop. If a
change of control of A-Prop occurs, the implementation of the transaction will
be conditional on A-Prop unitholders waiving any mandatory offer triggered by
virtue of any such change of control. In addition, the transaction, if
consummated, will be conditional on the securing of all necessary unitholder and
regulatory approvals.
The proposed transaction will include the appointment of an equally held joint
venture between RMB Properties (Pty) Limited and Corovest Property Group Limited
to manage the fund.
The proposed transaction, if implemented, may have a material effect on the
price of A-Prop linked units. Accordingly, linked unitholders are advised to
exercise caution when dealing in A-Prop linked units until a full announcement
is made.
Rosebank
15 July 2004
Sponsor and corporate advisor
Java Capital (Proprietary) Limited
Corporate advisor to Momentum
RMB Corporate Finance
Date: 15/07/2004 05:18:53 PM Produced by the JSE SENS Department
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