Arrowhead Properties: Vividend units purchase planned

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Arrowhead Properties, the listed real estate investment trust (Reit), yesterday reported its firm intention to acquire all the issued units in listed Vividend Income Fund it did not already own. This follows Arrowhead’s acquisition in December of 31.7 percent of the issued Vividend linked units from Coronation and its acquisition effective from the beginning of last month of the equity in Vividend Management Group, the external asset manager of Vividend, for R88.6 million. 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 in terms of a scheme of arrangement, with this minimum offer matching the offer for Coronation’s holding in Vividend. Stanlib, which controls about 60.2 million Vividend units representing about 22 percent of Vividend’s issued units, has undertaken to vote in favour of all resolutions necessary. The transaction would increase Arrowhead’s market capitalisation to about R5.5 billion and the value of its portfolio to about R6bn from about R4.5bn. Gerald Leissner, Arrowhead’s chief executive, said the trust pleased the transaction had the support of the Vividend management and board. – Roy Cokayne

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