This paves the way for Redefine’s acquisition of an additional 19,7-million Hyprop units from Coronation Asset Management, which increases Redefine’s stake in the retail focused fund from 33,3% to 45,2%.

The approval and implementation of the transaction triggers a mandatory offer by Redefine to all remaining Hyprop unitholders at a price of R50 per unit.

The acquisition and mandatory offer collectively require Redefine unitholder approval, and a circular has been dispatched to unitholders, convening a general meeting on 12 August 2010.

Redefine CEO Marc Wainer says Redefine has played an integral role in Hyprop’s growth, acquisition strategy and strategic management. “Our investment in Hyprop is significant, and we can protect this investment by increasing our influence on the management of the company. The acquisition will significantly increase Redefine’s holding, and therefore its influence,” he says.

The recent increase in Hyprop’s unit price is beneficial to Redefine since Redefine purchased the units from Coronation at R50 per unit, and the unit price movement has already increased the value of the investment significantly.

“The increase in unit price also makes the mandatory offer to Hyprop unitholders less attractive, and we are not expecting a significant take up of the mandatory offer, which means the transaction will be less dilutionary than we originally anticipated,” he says.

A further announcement detailing the terms of the mandatory offer will be published in due course.