Arrowhead, the JSE-listed property company announced on 6 December, 2013 that it had acquired 31,7% of Vividend Income Fund.
Arrowhead has now purchased the Vividend Management Group, which manages the Vividend Income Fund, for R88,6 million.
Stanlib, the owner of 22% of Vividend Income Fund units, has agreed to support a scheme of arrangement for Arrowhead to acquire all the Vividend units it does not already own for a consideration of not less than 0,374 Arrowhead A unit and 0,374 Arrowhead B unit for every Vividend unit. Arrowhead is paying Stanlib an option premium of R4 461 500 to acquire Stanlib's 22% interest should the scheme of arrangement not go ahead.
Gerald Leissner, Arrowhead CEO, says, "Arrowhead's acquisition of a stake in any quoted property company must be revenue enhancing and should only be entered into if there is a realistic possibility of Arrowhead acquiring property assets as a result of such acquisition. It is not the intention of Arrowhead to become a "hybrid" i.e. to own a property portfolio as well as owning stakes in listed property companies. "The initial Vividend transaction as well as the acquisition of the Vividend Management Company and the launching of the scheme of arrangement will result in Arrowhead managing and controlling an additional R2 billion revenue enhancing property portfolio."
Ari Jacobson, CEO of Vividend, says, "The various Vividend transactions have had the support of the Vividend management and board and Arrowhead is engaging with the board regarding the scheme of arrangement."