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Vukile clears comp hurdle

Nov 22 2004 09:05

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Johannesburg - Listed property fund Vukile has obtained unconditional approval from the competition tribunal for its offer to acquire the entire issued capital of MICC.

This was one of the conditions precedent for Vukile's offer to acquire all the linked units in MICC for a consideration of 126 new Vukile linked units for every 100 MICC linked units.

The remaining conditions are the approvals required from the JSE Securities Exchange, the Securities Regulation Panel and Vukile's unitholders.

Vukile chief executive Gerhard van Zyl said the go-ahead from the tribunal brought the deal designed to create a major new property company one step closer.

"If the offer succeeds, the proposed merger between Vukile and MICC will produce a business with assets of more than R2.7bn and a market capitalisation of R1.4bn, which will be able to compete effectively for quality assets and attract a broad spread of institutional investors.

"There are also significant synergistic and cost saving benefits inherent in the transaction," Van Zyl said.

 
 
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