This is expected to be done by means of one or more indivisibly linked schemes of arrangement to be proposed by the independent board of directors of [DATA VIF:Vividend Income Fund Limited] or by means of a voluntary general offer extended to all Vividend linked unit holders.
“The transaction contemplated in the scheme is in line with Arrowhead’s investment strategy of only making distribution enhancing acquisitions and will allow Arrowhead to acquire control of Vividend’s portfolio of commercial, industrial and retail properties, valued at approximately two billion rand, that is complimentary to its own portfolio,” it said.
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Vividend indicated that it was approached by [DATA AWA:Arrowhead Properties Limited] following the company’s acquisition of Vividend Manco.
“Vividend management have advised the Vividend independent board of certain structural changes in the listed property sector recently which have negatively impacted investor sentiment, specifically towards small-mid cap, illiquid property stocks and as a consequence the ability of Vividend to continue to acquire property on a non-dilutive basis,” said the income fund.
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“Given those factors, the Vividend independent board believes that it is in the interests of Vividend and Vividend linked unit holders that they be given the opportunity to consider the proposed transaction.”
The scheme, should it be implemented, will entitle those persons who are recorded in the securities register of Vividend on the scheme record date, to receive the scheme consideration.