Growthpoint Raises Fountainhead Bid on Rival Exclusivity EndKamlesh Bhuckory
Growthpoint Properties Ltd., South Africa’s biggest real-estate company by market value, raised its bid for Fountainhead Property Trust as exclusive talks with a rival bidder end tomorrow.
The revised offer is 5.7 percent, or 605 million rand ($68 million), higher than its previous bid, the Johannesburg-based company said in a statement today. The offer of 37 Growthpoint linked units for every 100 Fountainhead units is 8.6 percent higher than a bid by Redefine Properties Ltd., Growthpoint said.
Fountainhead and Redefine started exclusive talks in December. Growthpoint submitted a bid for Fountainhead in October. Fountainhead said in a separate statement there isn’t a written sale agreement with Redefine and it will review the Growthpoint offer.
Growthpoint shares declined for a second day, losing 1.7 percent to 25.45 rand by the close in Johannesburg. They have risen 3.9 percent this year, while Redefine has climbed 4.6 percent and Fountainhead 2.3 percent.