Redefine set to take full control of Fountainhead Property Trust

Posted On Monday, 29 June 2015 15:09 Published by
Rate this item
(0 votes)

Redefine Properties’ drawn-out battle to acquire Fountainhead Property Trust is nearing its end.

 

Marc Wainer

Redefine Properties’ drawn-out battle to acquire Fountainhead Property Trust is nearing its end, with the two property funds yesterday jointly announcing a takeover agreement. The transaction will see Redefine acquire the third of the shares in Fountainhead it does not already own, and now only requires the approval of shareholders to be completed.

Redefine has spent nearly three years trying to acquire Fountainhead and its portfolio, which is valued at about R13bn and contains some key metropolitan shopping centres. During this process it acquired Fountainhead’s management company and about two thirds of the trust’s shares. Growthpoint Properties made a competing offer for Fountainhead’s assets, but its bid was not accepted.

“Fountainhead’s property portfolio is very attractive, even if part of it has been neglected over the past few years. “Last year we made an attempt to buy the shares of Fountainhead we did not already own. We came just short in terms of the shareholder approval needed, but this time we offered a more attractive swap ratio in our agreement,” said Redefine’s executive chairman, Marc Wainer.

In terms of the proposed transaction, Fountainhead unit holders would receive 85 Redefine consideration shares, subject to rounding, for every 100 Fountainhead units in issue on the record date, expected to be August 7, directly from Redefine.

Portfolio manager at Investec Asset Management Peter Clark said that Fountainhead’s shareholders were likely to vote in favour of the transaction. “Long term this is the right move for Redefine as it increases the quality of its portfolio and its exposure to retail. However, short term it may cause some dilution,” said Mr Clark. 

Most Popular

Empowering women in engineering through B-BBEE

Jan 13, 2020
Andrew Yorke
Working to embrace the spirit of transformation and developmen.

Repo rate cut by 25 basis points

Jan 16, 2020
Governor_Lesetja_Kganyago_SARB1
The Reserve Bank has reduced the repo rate by 25 basis points to 6.25% in line with…

Cheap cement imports crippling local industry

Jan 16, 2020
Databuild CEO Morag Evans
Local cement manufacturers are being severely undermined by cheap imports from countries…

The rising tide of the silver economy

Jan 16, 2020
Chris Cilliers
Whilst we may not yet have discovered the long-coveted elixir of eternal youth, the truth…

Property in 2020 - here's what's happening

Jan 16, 2020
Carl Coetzee CEO of BetterBond
With the political, economic and social landscape in South Africa being what it is, i.e.…

Please publish modules in offcanvas position.