Redefine Offers Hyprop Shares for Larger Fountainhead Stake
Redefine Properties Ltd. (RDF), South Africa’s second-biggest property company, plans to increase its stake in Fountainhead Property Trust (FPT) by acquiring as many as 250 million participatory units in an all-share deal.
The offer consists of 110 units of Hyprop Investments Ltd. (HYP) for every 1,000 units of Fountainhead, Johannesburg-based Redefine said in a statement today. Redefine already owns about 50 percent of Fountainhead, the two companies said.
Redefine holds 11.4 percent of Hyprop, valued at about 2 billion rand ($200 million), based on today’s share price, according to data compiled by Bloomberg. Redefine Chief Executive Officer Marc Wainer said May 30 he may use the stock as a currency for an acquisition or sell the shares. Redefine has reduced its stake from 30 percent, using the shares to help amass a controlling stake in Fountainhead.
Fountainhead, Hyprop and Redefine own shopping centers and office parks in Africa’s largest economy. The central bank forecasts gross domestic product will expand 2 percent this year, the slowest pace since a 2009 recession, after strikes by thousands of workers in the mining, manufacturing and construction industries in August and September crimped growth.
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