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Ambit delists after bid to merge with Apexhi approved

Posted On Monday, 06 July 2009 02:00 Published by
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Ambit Properties will delist from the JSE today after its approved bid to merge with listed property loan stock company ApexHi Properties by the Competition Commission.

Marc Wainer

ApexHi is also expected to delist from the stock exchange once its merger with Redefine Income Fund is approved.

Redefine plans to acquire 100% of ApexHi Properties and Madison Property Fund Managers for a record R12,3bn.

The Competition Commission last month approved a bid by ApexHi to buy the shares it did not already own in Ambit Properties.

The listed property loan stock company hopes `to create an R11,7bn portfolio if its bid to acquire all the linked units in Ambit Properties succeeds.

ApexHi is the second-largest property company listed on the JSE, with a market capitalisation of R9,5bn and property assets valued at R10bn. The R2,4bn Ambit portfolio consists of 10 retail properties with a gross lettable area of 77423m², valued at R840m, while the office component consists of 20 office buildings with a lettable area of 163477m², valued at R1,4bn.

Ambit also has 10 industrial properties valued at R231m with a gross lettable area of 72890m².

After the acquisition, the office component of the ApexHi portfolio will increase from 39% to 40%, but retail will decrease from 39% to 37%. Industrial is expected to increase from 22% to 23%. The group said on Friday this was an appropriate sectoral spread.

ApexHi said the Ambit portfolio had a vacancy factor of only 2,3%.

Should the acquisition be successful, ApexHi has agreed to take cession of the Ambit Management Services (AMS) asset management contract in return for a cash consideration of R65m.

Upon acquisition, the AMS deal will be cancelled and the asset management of Ambit’s portfolio will be undertaken by Madison Property Fund Managers within the existing contract with ApexHi.

ApexHi said Madison had waived its asset management fee in respect of the increased enterprise value of ApexHi.

Last modified on Tuesday, 29 April 2014 15:06
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