Arrowhead reaches agreement to acquire remaining Vividend units

Property group Vividend Income Fund (VIF) has announced it has reached an agreement with Arrowhead Properties (AWA‚ AWB) to implement a deal in terms of which Arrowhead will acquire all the issued linked units in Vividend.

In terms of the scheme‚ Vividend-linked unit holders will receive 0.374 of an Arrowhead A linked unit and 0.374 of an Arrowhead B linked unit for every one Vividend linked unit.

Arrowhead will not offer any cash alternative unless the Takeover Regulation Panel determines that the scheme consideration should include a cash amount per Vividend linked unit equivalent to the option premium of R4.4m paid by Arrowhead to Stanlib Asset Management‚ being an amount of 7c per Vividend linked unit.

In that case‚ the scheme consideration shall be increased to include an additional cash consideration of 0.07c per Vividend linked unit.

Based on the volume weighted average price of Arrowhead A linked units and Arrowhead B linked units operated on the JSE for the 30 days up to March 28 2014‚ the scheme consideration implies a rand value of 506.11c per Vividend linked unit and represents a premium of 5% to the average price of Vividend linked units over the same period of 481.77c per Vividend linked unit.

Stanlib Asset Management‚ which owns 22% of Vividend‚ has undertaken to support the scheme.

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