COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 57/LM/Jun07
In the matter between:
ApexHi Properties Ltd Acquiring Firm
And
15 Properties from the Toda Family Target Firm
Panel : N Manoim (Presiding Member), L Reyburn (Tribunal
Member) and M Mokuena (Tribunal Member)
Heard on : 11 July 2007
Order issued on : 11 July 2007
Reasons issued on : 20 July 2007
Reasons for Decision
Approval
1]On 11 July 2007 , the Tribunal approved the merger between ApexHi
Properties Ltd (“ApexHi”) and 15 properties belonging to the Toda Family.
The reasons follow below.
The Transaction and parties
2]In terms of the structure of the proposed transaction ApexHi is acquiring 15
residential properties from the Toda family.
3]ApexHi is a property loan stock company with various shareholders. It is not
controlled by any firm nor does it control any firm. It has a 10% non
controlling stake in Aengus Property Holdings (Pty) Ltd (“Aengus”).
4]The primary targets are 15 residential properties in Braamfontein and the
adjacent Johannesburg Central Business District which are owned by various
property letting firms. The firms are all ultimately controlled by the Toda family
through various trusts and hence have been treated as one transaction for
1
the purpose of considering this merger. 1
5]ApexHi states that the acquisition will further enhance and compliment the
quality, size and diversification and risk profile of its existing portfolio of
properties specifically the rentable residential space sector. ApexHi further
states that it is its intention, with the help of Aengus, a property development
company, to refurbish these buildings and provide a comfortable clean
environment for tenants to live in, as well as an overall contribution to the
revival of the Braamfontein area. The rationale for the primary target firms is
to realize their investment by exiting the residential property market in the
Braamfontein.
The relevant market and impact on competition
6]There is no overlap between the activities of the merging parties since
ApexHi does not currently own any residential properties in Johannesburg or
South Africa.
7]The 15 properties being sold are all residential properties in the Braamfontein
node in Johannesburg. Although it is not necessary to identify the relevant
geographic market, due to there being no product overlap, the merging
parties estimate that these properties represent a market share of 6% in the
residential property market in the Johannesburg CBD area.
8]In light of the above, we find that the transaction would not substantially
prevent or lessen competition the relevant markets.
Public interest issues
9]There are no significant public interest issues.
____________________ 20 July 2007
N Manoim Date
1 See page 18 of the record for a list of the sellers and page 4 of the Commissions
Recommendation for a list of the properties.
2
L Reyburn and M Mokuena concurring.
Tribunal Researcher: R Badenhorst
For the merging parties: Jocelyn Katz from Edward Nathan Sonnenberg
For the Commission: Ipeleng Selaledi and Makgale Mohlala (Mergers &
Acquisitions)
3