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Vukile another step closer to full acquisition of Synergy
![Laurence Rapp, CEO, Vukile Property Fund](https://biz-file.com/c/1411/238578.jpg)
Now Vukile has triggered a mandatory offer by acquiring and taking transfer of 3,543,839 Synergy B linked units from Stanlib Asset Management and 5,584,586 Synergy B linked units from Liberty Group, both at a swap ratio of one Vukile linked unit for every 2.67 Synergy B linked units which brings its holding in Synergy to 39.965%.
Laurence Rapp, CEO of Vukile, remarks, "Vukile has been patient and prudent with its strategic stake in Synergy. The time is now ripe to move this opportunity forward.
"Any deal we do is about creating value for Vukile unit holders. Doing the right deal always comes down to price and strategy. Synergy's assets have a strong strategic fit for Vukile's portfolio. However, that alone is not enough. While we are eager to add the right assets to our portfolio, we simply will not chase growth at any cost. We have been patient and waited for the price to be right for our investors before we act. Today, the pricing makes more sense for us to pursue this opportunity."
He confirmed that Vukile will offer to acquire the remaining Synergy B linked units at a swap ratio of one Vukile linked unit for every 2.67 Synergy B linked units. It will also extend a comparable offer to Synergy of a linked unit holders at a swap ration of one Vukile linked unit for every 1.65 Synergy A linked units.
The only condition precedent to the deal is securing Competition Authorities approval and thereafter the offer will be open for acceptance for 30 business days. Vukile already has sufficient authorised and unissued units to settle the offers.
JSE-listed REIT Vukile holds a diversified portfolio of 79 property assets valued at R10.3 billion. Itwas an early entrant into the lower-income retail market and has built a very attractive portfolio of 28 retail assets, mostly serving lower-income consumers. Synergy is also a JSE-listed REIT, with a specialised portfolio of 15 retail properties valued at approximately R2.4 billion. Synergy's investment focus is also concentrated on the high growth, lower-income market.
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