Tuesday, 1 April 2014. Arrowhead Properties Limited (Arrowhead), the JSE-listed SA REIT (Real Estate Investment Trust), announced its firm intention to acquire all the issued units in Vividend Income Fund (Vividend) that it does not already own.
In a firm intention announcement on the JSE's SENS today, unitholders were informed of the terms of the scheme of arrangement and, if the scheme is passed, Arrowhead proposes to acquire all the issued linked units in Vividend for a consideration of not less than 0.374 Arrowhead A and 0.374 Arrowhead B units for every Vividend unit.
Stanlib, which controls about 60.2 million Vividend units (representing about 22% of Vividend's issued units), has irrevocably undertaken to vote in favour of all resolutions necessary to approve the scheme.
The consideration offered in terms of the general offer, if it is made, will be the same as that offered under the Scheme.
If supported by Vividend unitholders, this transaction will increase Arrowhead's market capitalisation to around R5,5 billion and its portfolio to around R6 billion.
Gerald Leissner, Arrowhead CEO, says, "We are pleased that the Vividend transaction has had the support of the Vividend management and board. The transaction is expected to create certainty and unlock significant value for Vividend shareholders by providing them with access to a larger more liquid fund with faster growing distributions."