May 31 (Bloomberg) -- Redefine Properties Ltd., South Africa’s second-biggest real estate company, plans to sell its stake in Hyprop Investments Ltd. starting in September after becoming the biggest shareholder in a rival company.
Redefine will use the shares as “currency for an acquisition” or sell them through the market, Chief Executive Officer Marc Wainer said in a phone interview yesterday. The disposal would begin in the company’s next fiscal year, starting Sept. 1, when Redefine converts into a real estate investment trust, he said.
The stake, 11.42 percent according to data compiled by Bloomberg, is valued at about 1.94 billion rand ($190 million) with Hyprop shares trading 3.6 percent lower at 70 rand at 11:00 a.m. in Johannesburg. Redefine shares traded 5.8 percent lower at 9.31 rand.
Redefine, based in Johannesburg, has reduced its Hyprop holdings from 30 percent, using the shares to help amass a 46 percent stake for 5 billion rand in Fountainhead Property Trust, according to Wainer. He will step down from Hyprop’s board on June 27.
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