Johannesburg - Redefine Properties Ltd., South Africa’s second-biggest property company, plans to increase its stake in Fountainhead Property Trust by acquiring as many as 250 million participatory units in an all-share deal.
The offer consists of 110 units of Hyprop Investments Ltd. for every 1,000 units of Fountainhead, the company said in a statement today. Redefine owns about 50 percent of Fountainhead, according to the statement.
Redefine holds 11.4 percent of Hyprop, valued at 2 billion rand ($20 million), based on today’s share price, according to data compiled by Bloomberg.
Redefine chief executive Marc Wainer said May 31 that the Johannesburg-based company will use the stock as a currency for an acquisition or sell the shares on the market.
Redefine has reduced its Hyprop stake from 30 percent, using the shares to help amass a controlling stake in Fountainhead.
Fountainhead shares rose for the first time in six days, gaining as much as 4.6 percent.
The stock traded 1.4 percent higher at 7.98 rand as of 9:29 a.m. in Johannesburg trading, valuing the company at 9.3 billion rand. Hyprop stock fell 0.6 percent to 73.40 rand. - Bloomberg News