MICC minorities up in arms over 'bias in favour of
MICC minorities up in arms over `bias in favour of Vukile
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Property Reporter
TWO minority shareholders in listed property loan stock company MICC Property Income Fund yesterday expressed concern about an alleged lack of objective information provided by MICC`s board about ApexHi Properties` takeover offer of MICC and a perceived bias in favour of Vukile Property Fund`s bid.
The shareholders Oasis Asset Management and Property Investment Consultants and Advisers also said there was a potential conflict of interest for the promoters of MICC and Vukile`s listings, who were expected to earn further fees if successful with the merger .
MCH Properties, in which Sanlam Properties has a 70% interest, is the promoter of the listings of MICC and Vukile. Sanlam owned a 17,6% share in MICC but has since sold it to Vukile.
Andisa Securities property analyst Len van Niekerk said yesterday that Sanlam stood to lose asset management and promoters` fees if ApexHi`s offer for MICC was accepted.
Vukile is offering 12 Vukile-linked units for every 10 MICC-linked units, and says the implied value of the offer is R6. ApexHi initially offered to buy the property assets of MICC, but is now offering to buy all of MICC`s linked units in a linked unit exchange deal at an implied value of R6,20 for each MICClinked unit.
Michael Swingler, an executive director of Oasis Asset Management, which holds 4,6% of MICC, said yesterday that based on current market prices, it found ApexHi`s offer more attractive than Vukile`s offer and that ApexHi units were 10 times more liquid .
Swingler said about R4m of Vukile units were being traded every month as opposed to an average R50m in ApexHi units.
`Of great concern for us is that there appears to be a lack of objective information provided by MICC management on the ApexHi offer and a bias in favour of the Vukile offer,` Swingler said.
Gerhard van Zyl, CEO of Vukile, confirmed that MCH Properties was the party promoting the proposed merger of Vukile and MICC.
Van Zyl said he `certainly can`t think why` MCH Properties would have a conflict of interest.
MICC management was not available for comment.
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