Vukile is still bent on taking full control of MICC Property

Vukile, the listed property fund, is still intent on gaining full control of listed MICC Property Income Fund after being thwarted in its efforts to do so earlier this year. Vukile and MICC yesterday advised unitholders in a joint statement that they had entered into negotiations regarding the acquisition by Vukile of the linked units in MICC it did not already hold.

They said that, on conclusion of the proposed transaction, Vukile would hold 100 percent of MICC's issued capital and advised unitholders to exercise caution when dealing in the companies' linked units until a further announcement was made.

However, they did not mention any negotiations with ApexHi, the listed property company, which earlier this week reported that it had increased its stake in MICC from 19 percent to 24 percent via the sale of the Protea Assurance building in Cape Town to Oasis Crescent Property Fund for R44 million.

This transaction was to be settled by R20 million in cash and 3.1 million MICC units that were previously held by Oasis. ApexHi gained control of 19 percent of MICC's issued share capital in February this year after an inconclusive battle for control of the company with Vukile.

Vukile's attempts to gain full control of MICC appeared to reach a dead end in June this year when it failed to obtain the minimum 90 percent support from minority unitholders to enforce a buyout.

Mike Potts, Vukile's financial director, said yesterday that Vukile now held more than 75 percent of the issued share capital in MICC and it "can be inferred" that the discussions between it and MICC would have to also involve ApexHi.

ApexHi director Deon Feinblum said earlier this week it was not the company's intention to hold units in other property funds and the rationale for the foray into MICC had always been to acquire properties from the MICC portfolio.

"The acquisition of additional MICC units puts ApexHi in a stronger position to negotiate with Vukile and MICC to acquire MICC properties in exchange for the units," he said.

The deal with Oasis was yield enhancing for ApexHi unitholders and confirmed the company was in negotiations with Vukile and MICC to acquire properties that fitted the profile of the ApexHi portfolio, Feinblum said.

Vukile closed unchanged at R6.80 yesterday. MICC ended unchanged at R8.90. The property loan stock sector improved 0.29 percent.

Source: Business Report - www.busrep.co.za

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