COMPETITION TRIBUNAL OF SOUTH AFRICA
CaseNo: 20/LM/Feb07
In the matter between:
Siyathenga Properties Two (Pty) Ltd Acquiring Firm
And
Erf 38722, Bellville, Jointly Controlled By
Siyathenga Properties Two (Pty) Ltd and
Mini Cape Developments (Pty) Ltd Target Firm
___________________________________________________________________
Panel : Y Carrim (Presiding Member), N Manoim
(Tribunal Member) and M Mokuena (Tribunal
Member
Heard on : 25 April 2007
Decided on : 25 April 2007
Reasons Issued : 16 May 2007
REASONS FOR DECISION
Approval
[1]. On 25 April 2007 the Competition Tribunal issued a Merger Clearance
Certificate approving the merger between Siyathenga Properties Two (Pty) Ltd and
Erf 38722 (a portion of Erf 21750), jointly controlled by Siyathenga Properties Two
(Pty) Ltd and MiniCape Developments (Pty) Ltd unconditionally. The reasons
appear below.
Parties
[2]. The acquiring firm is Siyathenga Properties Two (Pty) Ltd (“Siyathenga”) a
company incorporated under the Company laws of the Republic of South Africa. 1
1 Siyathenga Property Fund Ltd holds 100% of the entire issued share capital of Siyathenga.
Pangbourne Properties Ltd holds 43% interest in Siyathenga Property Fund Ltd and controls
Siyathenga Property Fund. Pangbourne is a listed company and is not directly or indirectly controlled
by any single shareholder
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[3]. The target firm is Erf 38722 (a portion of Erf 21750) Bellville City Of Cape
Town (“the Willowbridge Property”), jointly controlled by Siyathenga Properties Two
(Pty) Ltd and MiniCape Developments (Pty) Ltd (“MCD”). 2
Transaction
[4]. The proposed transaction envisages Siyathenga acquiring an additional 25%
in Erf 38722 and thereby increasing its current 50% shareholding in Erf 38722 to
75%. This acquisition will result in change of control in the target firm from joint
control to sole control in favour of Siyathenga.
Rationale for the Transaction
[5]. The acquiring firm is seeking through this transaction to increase the volume
of its rental space. From the target firm’s perspective the sale is required in
connection with the restructuring of Kagiso Property Developments (Pty) Ltd
business and to raise funds for further projects.
Activities of the Parties
[6]. The acquiring firm is a property holding company which has a property
portfolio comprising of industrial, offices and retail properties. The target firm is a
retail property in the Bellville node, Cape Town.
Competition Analysis
[7]. In its analysis the Commission found that it is not necessary to conclude on the
relevant product market as the overlap between the merging firms is due to the prior
shareholding the acquiring firm has in the target property. Hence there would be no
2 MCD is ultimately controlled by Kagiso Property Holdings (Pty)Ltd and the latter is a subsidiary of
Kagiso Trust Investments (Pty )Ltd
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change in the market structure and the transaction would not result in any market
share accretion. We agree with the Commission’s approach and conclude that the
transaction is unlikely to substantially prevent or lessen competition. In addition, the
transaction does not raise any public interest concerns.
Conclusion
[8]. Based on the above, the transaction is approved unconditionally.
___________________ 16 May 2007
Y Carrim Date
Tribunal Member
N Manoim and M Mokuena concurring.
Tribunal Researcher : J Ngobeni
For the merging parties : Jocelyn Katz (Edward Nathan Sonnenberg Inc)
For the Commission : Makgale Mohlala (Mergers and Acquisitions)
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