Response to ApexHi puts Vukile in front for MICC

Posted On Wednesday, 20 October 2004 02:00 Published by eProp Commercial Property News
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ApexHi Properties is up in arms over response from the MICC board to its takeover bid for MICC Property Income Fund's property portfolio.


Gerhard van Zyl

Listed property loan stock giant ApexHi Properties is up in arms saying that it has received an inadequate response from the MICC board to its takeover bid for MICC Property Income Fund's property portfolio.

It now appears that rival property loan stock company Vukile Property Income Fund has pipped ApexHi at the post by obtaining undertakings to accept its takeover offer from more than 50% of MICC's unitholders.

Vukile CEO Gerhard van Zyl said any other company wanting to acquire the assets of MICC would, in terms of the rules governing takeovers, have to get approval from 50% of MICC unitholders. Because Vukile has undertakings from more than half of MICC unitholders, it could squeeze out ApexHi.

But Andisa Securities property analyst Len Van Niekerk said these undertakings would most probably have been "soft" undertakings that would still allow MICC unitholders to accept another better offer.

ApexHi executive director Deon Feinblum said yesterday that the company was "not convinced" Vukile had received undertakings to accept the offer from half of MICC's unitholders.

He said ApexHi would approach major unitholders in MICC to tell them an alternative offer was on the table.

On September 7 MICC said listed Vukile had made a firm offer to MICC unitholders to acquire their linked units.

Vukile said it had undertakings to accept the offer from unitholders owning 40,5% of MICC's issued linked units.

Since then ApexHi has expressed interest in MICC's property portfolio and made a formal offer for it.

ApexHi said it initially received an acknowledgment of receipt of the offer from MICC, and was told that Vukile and ApexHi's offers were going to be referred to MICC's independent advisers.

Feinblum said MICC had also not advised its unitholders of ApexHi's alternate offer. He said that MICC's board had informed ApexHi that it was not sure it needed to speak to ApexHi because it had been told by Vukile that it now had more than 50% support for Vukile's proposed takeover bid.

Feinblum said MICC had never taken ApexHi's offer seriously. If so, it would have informed its unitholders and analysed both deals.

MICC management said MICC was trading under a cautionary notice, and could not comment.

Last modified on Tuesday, 13 May 2014 19:48

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