VUKILE - MERGER WILL CREATE PLATFORM FOR IMPROVED CAPITAL AND INCOME GROWTH
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2002/027194/06
JSE code: VKE ISIN: ZAE000056370
For further information call Gerhard van Zyl on 011-288-1000
Vukile offer document sets out the case for acquisition of MICC
MERGER WILL CREATE PLATFORM FOR IMPROVED CAPITAL AND INCOME GROWTH
Johannesburg, 29 November 2004 - The proposed merger between property
companies Vukile and MICC will benefit both through an extended asset base,
better risk diversification and improved operational efficiencies.
This is the rationale advanced in Vukile`s offer document, published today, for
the acquisition of all of MICC`s issued capital for a consideration of 126 new
Vukile linked units for every 100 MICC linked units. The offer is still
conditional upon the approval of Vukile`s unitholders, although the
unconditional undertakings to vote in favour of the acquisition makes this a
fait accompli.
The document notes that Vukile controls approximately 62% of MICC.
Notwithstanding the results of the offer, Vukile will therefore be MICC`s
controlling shareholder anyway. However, Vukile is seeking to acquire 100% of
MICC as it believes the anticipated merger benefits will only be realised fully
if it owns all of that company.
If the offer is successful, and Vukile acquires all of MICC, the combined
business will have assets of more than R2.7 billion and a market capitalisation
of some R1.4 billion, placing it in the Top 10 of South African property loan
stock companies. Enlarged size and resources will enable it to compete more
effectively for quality assets as well as to attract a broader spread of
institutional investors. Vukile said following the offer, it would embark on a
comprehensive programme to extend its unitholder base and improve liquidity.
The document says the Vukile offer provides MICC unitholders with the
opportunity to participate in a larger, better quality portfolio, with enhanced
capital and income growth potential, an enhanced tenant mix and an improved risk
profile. In addition, it will give them access to enhanced, property-specific
management skills, capable of achieving long-term growth and, in the short term,
realising synergies and cost savings from the merger of the two asset management
structures.
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Kathy du Plessis Tel : +27 11 728 4701, Fax: +27 11 728 2547,
Mobile: 083 266 5847 or e-mail: vukile@dpapr.com
Date: 29/11/2004 07:46:01 AM
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