Growthpoint raises Fountainhead bid

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Published Feb 21, 2013

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Johannesburg - Growthpoint Properties, South Africa’s biggest real estate company by market value, raised its bid for Fountainhead Property Trust as exclusive talks with a rival bidder ends tomorrow.

The revised offer is 5.7 percent, or 605 million rand ($68 million), higher than its previous bid, the 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, 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 traded 0.7 pct higher at 26.07 rand by 9.28 a.m. in Johannesburg.

They have risen 6.2 percent this year, while Redefine has climbed 5.6 percent and Fountainhead 4.4 percent, according to data compiled by Bloomberg. - Bloomberg News

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