Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Oasis Advises Clients to Oppose Redefine’s Fountainhead Deal

Oasis Group Holdings, a Cape Town-based money manager, advised clients not to support Redefine Properties Ltd.’s plan to buy Fountainhead Property Trust, saying it will dilute the income from their investment.

On March 30, Redefine said it had reached an agreement with Standard Bank Properties (Pty) Ltd. and Liberty Holdings Ltd. to acquire Fountainhead’s management company for 660 million rand ($85 million). The Johannesburg-based property company said it also intends to make an offer for all of Fountainhead’s assets in exchange for Redefine and Hyprop Investment Ltd. shares.

“The price paid for control of the Fountainhead management company was excessive and would undoubtedly be recovered from its investors,” Oasis analyst Hassan Motala said in an e-mailed statement today.

Redefine and Hyprop shares also had worse debt and yield profiles than those of Fountainhead, while Redefine had a relatively poor track record of growing its recurring cash flow and distributions, he said.

“This proposed transaction by Redefine will be very negative for Fountainhead unit holders,” Motala said. “We urge Fountainhead unit holders not to support this proposed transaction.”

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.