Listed Redefine Properties now has a 66 percent stake in Fountainhead Property Trust and believes it should be in a position by the end of this month to make an offer for all the assets of the listed property trust.
Marc Wainer, Redefine’s chief executive, said it was in the process of getting all the regulatory approvals to enable it to make an offer. He said it had already obtained approval from the Financial Services Board and was waiting for feedback from the JSE and Fountainhead’s independent board.
He said approval by at least 75 percent of the owners of the 34 percent holding in Fountainhead that Redefine did not own and who were present and voting would be required for the acquisition to be approved.
Redefine would not be allowed to vote.
Wainer said the target was to finalise the acquisition by the end of Redefine’s financial year in August.
Listed Growthpoint and Redefine were involved until early last year in a battle for Fountainhead’s assets, largely because Growthpoint had made an offer for Fountainhead that excluded its management company. Redefine paid Standard Bank Properties and Liberty Holdings R660 million in 2012 to acquire Fountainhead’s management company and warned of litigation if Fountainhead’s assets were sold and Redefine did not receive any compensation for the acquisition costs of the management firm.
Redefine countered the threat of Growthpoint acquiring Fountainhead’s assets without it receiving compensation by investing R4.8 billion to build up a 45.6 percent shareholding in Fountainhead. It regarded this shareholding as a blocking vote to any attempt by Growthpoint to acquire these assets.
This led to Growthpoint withdrawing in May last year its offer to acquire Fountainhead, although it initially indicated it had not given up. Growthpoint chief executive Norbert Sasse confirmed in August “the book is closed and it has already called it a day” in its bid to acquire Fountainhead.
Redefine indicated that it would probably revisit the proposed acquisition of Fountainhead’s assets in the future.
Redefine’s linked units fell 1.28 percent to close at R10.02 on Friday, while Fountainhead’s linked units fell 1.03 percent to R7.70. In contrast, Growthpoint shares rose 0.25 percent to close at R24.35. – Roy Cokayne