Will SA retail and Martprop get together?

Posted On Monday, 27 June 2005 02:00 Published by eProp Commercial Property News
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Business Day interview with Simon Pearse.

Simon PearseHyprop makes a bid for SA Retail - but SA Retail unit holders aren’t having any of it! Could a bigger bid be hiding in the wings? With Marriott Property (Martprop) chief executive Simon Pearse

LINDSAY WILLIAMS: What’s the current situation? This seems to have been going on for ever and ever! There’s a few soap operas in the business world related to JSE companies at the moment - this is one of the most fascinating…

SIMON PEARSE: You’re right - it has been going on, and we’d certainly like to see finality. I can give some background - Hyprop has made an offer to SA Retail unit holders either to buy their shares with Hyprop units, or offer them cash. The situation is now that over 50% of SA Retail unit holders have elected not to accept the offer. The offer is conditional on support from Hyprop unit holders - they had a meeting two days ago, and the meeting was adjourned. The meeting has now been pushed out to 13 July 2005 - when they will vote. The current feeling is that they will support the proposal - hopefully it will come to an end on 13 July.

LINDSAY WILLIAMS: Is there anyone else in the running?

SIMON PEARSE: No, not at this stage. The way forward is probably to consolidate Martprop and SA Retail - that’s what the unit holders are looking for, and the boards of Martprop and SA Retail I’m sure will consider this very seriously.

LINDSAY WILLIAMS: Do you think this is all going to happen on 13 July?

SIMON PEARSE: No, on 13 July the unit holders of Hyprop will vote to determine if the offer from Hyprop should go ahead or not. Because they know they won’t have support from SA Retail unit holders - to accept their offer - it’s unlikely that it will go ahead.

LINDSAY WILLIAMS: So nothing will go ahead? The general meeting of Hyprop shareholders and Hyprop debenture holders - convened for the purpose of securing the requisite approvals to make the offer to SA Retail - was adjourned? What happens after 13 July?

SIMON PEARSE: Now they know over 50% of SA Retail unit holders will reject he offer - so it’s more than likely that Hyprop unit holders will give a negative vote that will essentially mean they won’t go ahead with making the offer.

LINDSAY WILLIAMS: Does that leave the door open for somebody else to make an improved offer?

SIMON PEARSE: I guess it could, yes. The likelihood is that the boards of Martprop and SA Retail will look to merging the funds

Last modified on Wednesday, 07 May 2014 08:57

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