Vukile Property Fund: Synergy acquisition talks called off

VUKILE has withdrawn from acquisition discussions with listed Synergy Income Fund. Laurence Rapp, Vukile’s chief executive, which acquired 49 percent of Synergy’s B-linked units in December, said it had been unable to agree on terms with the board of Synergy. “While we remain of the view that Vukile and Synergy unitholders would benefit from consolidation, we will only pursue a transaction which, based on the underlying property fundamentals and pricing, is appropriate and enhancing to our unitholders.” He admitted in May that Synergy would be a tremendous addition to the Vukile portfolio, but said Vukile was concerned about the pricing of Synergy units. Vukile units rose 10c to R17.10 yesterday. Synergy B-linked units fell 3.18 percent to R7 and A-linked units were flat at R11.51. – Roy Cokayne