30th May 2007 08:00
Investec PLC30 May 2007 Investec Limited Investec plcIncorporated in the Republic of South Africa Incorporated in England and WalesRegistration number 1925/002833/06 Registration number 3633621JSE share code: INL JSE share code: INPISIN: ZAE000081949 ISIN: GB00B17BBQ50 As part of the dual listed company ("DLC") structure, Investec plc and InvestecLimited notify both the London Stock Exchange and the JSE Limited of matterswhich are required to be disclosed under the Disclosure and Listing Rules of theUnited Kingdom Listing Authority (the "UKLA") and/or the JSE ListingRequirements. DISPOSAL OF THE PROPERTY FUND MANAGEMENT AND PROPERTY ADMINISTRATION BUSINESSESOF INVESTEC PROPERTY GROUP LIMITED 1. Introduction Investec Property Group Limited ("IPG") has agreed to dispose of its propertyfund management business and its property administration business, collectivelythe Property Services businesses as a going concern to Growthpoint PropertiesLimited ("Growthpoint") ("the proposed transaction"). IPG is a wholly owned subsidiary of Investec Limited ("Investec") and itsoperations include property development, property fund management, propertyadministration and listed property investment management. The propertydevelopment and listed property investment management businesses will not formpart of the proposed transaction. The effective date of the proposed transaction, which is subject to thesuspensive conditions set out in paragraph 4 below, is 1 July 2007. 2. Rationale The Property Services business infrastructure has largely been geared towardssupporting Growthpoint. Due to Growthpoint's significant increase in scale andfunds under management they believe it is appropriate that they manage their ownproperties. As a consequence IPG has agreed to sell the Property Servicesbusinesses to Growthpoint. 3. Purchase Consideration Growthpoint has agreed to acquire IPG's interest in the Property Servicesbusinesses, for a purchase consideration of R1,393,649,600 (one billion threehundred and ninety three million and six hundred and forty nine thousand sixhundred rand), ("the purchase consideration"). The purchase consideration willbe settled through the issue of 87 103 100 new Growthpoint linked units at aprice of 1600 cents per linked unit, ex distribution for the 6 month periodending 30 June 2007. 4. Suspensive Conditions The proposed transaction is subject, inter alia, to the fulfillment of thefollowing suspensive conditions: • The signing of binding legal agreements between IPG, Investec, Growthpoint and Growthpoint's BEE partners • Granting of all regulatory approvals as may be required from various authorities including the Competition Authorities • Growthpoint obtaining approval for the proposed transaction from the requisite majority of its linked unitholders in a general meeting. 5. Outlook It has been agreed that Investec's existing relationship with Growthpoint willbe maintained and formalized in a cooperation agreement. In terms of thisagreement IPG will continue to first offer its new property development andinvestment opportunities to Growthpoint, whilst Growthpoint will first offer newand re-development opportunities in its property portfolio to IPG's propertydevelopment business. It is also agreed that Growthpoint will administer allInvestec's owned properties. All transactions will take place on an arms lengthbasis at market related terms. Strategically, Investec will continue to conduct its property trading anddevelopment business, focus on increasing funds under management in its listedproperty investment management business, as well as create, manage anddistribute specialist property funds to its clients within all the geographiesin which it operates. 6. Financial Effects The proposed transaction will have no significant effect on Investec's earningsas reported at 31 March 2007 and will increase net asset value per share asreported at 31 March 2007 by approximately 8%. London and Johannesburg30 May 2007 Sponsor:Investec Bank Limited This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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