Growthpoint raises Fountainhead offer by R605m

Posted On Thursday, 21 February 2013 21:17 Published by Commercial Property News
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Listed property company Growthpoint Properties said on Thursday it had increased its offer for the property assets of the Fountainhead Property Trust from 35 Growthpoint linked units to 37 Growthpoint linked units for every 100 Fountainhead units, and reaffirmed its intention to settle or assume Fountainhead’s outstanding interest-bearing debt.

Growthpoint PropertiesRedefine Properties had been bidding for Fountainhead’s assets after acquiring the trust’s management company in August, and Growthpoint said last month that Fountainhead’s decision to engage exclusively with Redefine with regard to a takeover, until Friday, was a conflict of interest.

Growthpoint said its revised offer was an increase of 5.7%, or R605m above its previous offer, and a premium of 12.8% to the closing price of Fountainhead units on February 19.

"The revised offer also represents a premium of 8.6%, or R857m, to the Redefine offer on February 19," Growthpoint said.

Growthpoint’s unit price was 1.08% lower at R25.60 at 1.22pm on Thursday following the updates.

Growthpoint’s results for the six months ended December were expected to be published on February 27.

Growthpoint said that for the six months ended December, and for the full year ending June 30, its distribution per linked unit was forecast to be between 7% and 7.5% higher than the previous comparable periods.

This was ahead of its guidance previously provided to the market, Growthpoint said.

Meanwhile, Fountainhead’s unit price was 1.04% higher at R8.75 at 1.22pm.

Source: BD

Last modified on Sunday, 09 June 2013 10:47

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