Roy Cokayne
THE INDEPENDENT board of Synergy has recommended that linked unitholders in the listed property fund reject the offer from listed Vukile to acquire all the shares in the company it does not already own.
PSG Capital, the independent expert appointed by Synergy’s independent board to advise it on terms and conditions of Vukile’s offers for its A and B-linked units, found that the offers were “unfair but reasonable”.
Vukile offered to acquire the remaining units at a swap ratio of one Vukile-linked unit for 2.67 Synergy B-linked units. It has made a comparable offer to Synergy A-linked unitholders at a swap ration of one Vukile linked unit for every 1.65 Synergy A-linked units.
Vukile acquired a 34 percent share a year ago and 6 percent last month, which triggered a mandatory offer to all the remaining shareholders.
The Competition Tribunal last week approved the proposed merger without conditions.
Synergy’s board on Monday recommended linked unitholders reject the offer for a number of reasons, including its offer for B-linked units represented a discount of 19.1 percent to the fair value of a B-linked unit based on the midpoint of the indicative range a B-linked unit prior to the offer and the midpoint of the indicative market value of a Vukile linked unit.
Vukile shares rose 0.2 percent to close at R17.44 on Monday; Synergy A shares closed unmoved at R10.70, B shares closed unmoved at R6.80,