Arrowhead: Dipula stake to complement portfolio

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Listed property company Arrowhead reported yesterday that it had agreed to acquire 34.5 million Dipula B-linked units comprising 22 percent of Dipula Income Fund’s B-linked units from Investec Asset Management. The acquisition was unconditional and the purchase would be paid for by the issue and allotment of 18.8 million Arrowhead A- and 18.8 million B-linked units to Investec Asset Management on or about March 27. Arrowhead said the transaction was in line with its strategy of making only distribution-enhancing acquisitions and provided it with a strategic stake in Dipula’s R3.75 billion portfolio of properties, which Arrowhead considered complementary to its own. Chief executive Gerald Leissner said it was not Arrowhead’s objective to become a hybrid company by owning property directly and holding shares in other property companies for the long term. Leissner said Arrowhead would acquire an investment in other property companies only with the objective of converting the investment into physical property over time. Dipula B-linked units added 3.45 percent to end at R7.20, while Arrowhead’s A-linked units fell 1c to R6.72. – Roy Cokayne

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