CAPE TOWN - FAIRVEST Property Holdings said yesterday it had reached an agreement with Arrowhead Properties’ shareholders to acquire 50.1 percent of Arrowhead B shares through the issue of new Fairvest shares at a swop ratio of 1.85 Fairvest shares per Arrowhead B share.
In addition, Fairvest had received undertakings of support from 63.7 percent of its shareholders to vote in favour of the resolutions required to implement the swop agreements.
This followed Fairvest’s announcement on April 29 that it was interested in acquiring a stake in Arrowhead via privately placed share swop transactions, following a number of separate approaches from Arrowhead shareholders.
Fairvest chief executive Darren Wilder said: “We have had very positive engagements with both Arrowhead and Fairvest shareholders, as demonstrated by the level of support already achieved for this exciting opportunity to unlock sustainable value over time with the aim of creating a more liquid and well-rated REIT of scale.”
He said Fairvest believed that both sets of shareholders, some holding stakes in both companies, would benefit from the opportunities of a larger balance sheet, active asset management activities, further portfolio rationalisation, operational costs efficiencies and a refocused strategy.