Growthpoint-Acucap merger gets commission's thumbs-up

Growthpoint Properties CEO Norbert Sasse, says: “We are pleased to conclude this milestone transaction with Acucap. It will bring significant future benefits to all Growthpoint shareholders, including those joining us from Acucap and Sycom.”

The Competition Tribunal has unconditionally approved the merger between South Africa's largest REIT Growthpoint Properties and Acucap Properties, putting the long-anticipated deal to bed.

Growthpoint Properties and Acucap Properties have cleared the last hurdle in a deal that will give Growthpoint control of Acucap.

Last week on Thursday, the two companies said that all the conditions precedent for Growthpoint’s offer to acquire all the shares in Acucap that it doesn’t already own by way of a scheme of arrangement, have now been fulfilled.

Acucap will become a wholly-owned subsidiary of Growthpoint and be delisted from the JSE.

The all-share deal boosts Growthpoint’s strategy to gain scale, allowing it to attract greater interest from foreign investors, and to diversify its portfolio of assets into what it believes to be high quality retail properties.

Acucap owns several regional shopping centres‚ including Greenacres in Port Elizabeth‚ Festival Mall in Kempton Park and Key West in Krugersdorp.

The effective date of the scheme has been set for 1 April 2015 and it will be implemented on 28 April 2015, when all Acucap shares will be transferred to Growthpoint.

Acucap shareholders will receive 1.97 Growthpoint shares for every Acucap share they hold.

Growthpoint will also own 99% of Sycom Property Fund and 100% of the shares in Sycom Property Fund Managers Limited, the statutory fund manager of Sycom Property Fund.

“We are pleased to conclude this milestone transaction with Acucap. It will bring significant future benefits to all Growthpoint shareholders, including those joining us from Acucap and Sycom,” says Growthpoint CEO Norbert Sasse.

The transaction will boost Growthpoint’s property assets by R18 billion to nearly R100 billion. Its South African portfolio will grow in value over R75 billion.

It will own and manage a diversified portfolio of 477 properties in South Africa post Acucap and Sycom, 51 properties in Australia through its investment in GOZ and a 50% interest in the properties at the V&A Waterfront, Cape Town.

Growthpoint shares were up by 1.4% to R29.60 at 11.34am following the announcement.