By Thabang Mokopanele

Redefine International plans to cancel its listing on the London Stock Exchange’s Alternative Investment Market (AIM) if shareholders approve its merger with property group Wichford.

Redefine International shareholders will receive 7,2 new Wichford shares for every Redefine International share held.

On the JSE yesterday, Redefine International lost 7c, or 1,1%, to close at R6,25.

Redefine International said last month that it had reached an "in-principle understanding" with Wichford on a merger that would result in an enlarged company.

Redefine said yesterday that its delisting from AIM was subject to the offer being declared unconditional in all respects, which is expected to occur on August 22.

The company said if the offer is declared unconditional in all respects, cancellation would become effective at 8am on September 8, with the last day of trading of its shares on AIM being on September 7.

SA’s second-largest listed property group, Redefine Properties, owns 57% of Redefine Properties International.

Redefine Properties International would become the majority shareholder in the enlarged company, with a shareholding of 64%.

Redefine International owns 21,7% of Wichford, which invests in government property.

A merger would create an enlarged company listed on the main board of the London Stock Exchange with a diversified income-producing investment property portfolio.

Redefine has said that the two companies were a complementary fit, and would create a company in the mid tier of the UK’s listed property sector.

In addition to the growth prospects and improved capital structure, an enlarged shareholder base was expected to improve trading liquidity, and there was the potential for reduced combined expenses.

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Source: Business Day