Redefine acquires more units in Fountainhead

Redefine Properties, already the largest single participatory unitholder in Fountainhead Property Trust, announced yesterday, 2 October 2013, that it intends to acquire up to an additional 250 million participatory units to grow its Fountainhead holding.

Marc Wainer

It proposes to acquire the units on a swap ratio of 110 Hyprop units for every 1000 Fountainhead units on a first-come-first-served basis. In terms of Companies Act requirements, Redefine will acquire a minimum of 135,000 units from any single vendor of Fountainhead units and thereafter in multiples of 1000 units.

The offer opened on Wednesday 2 October 2013 and will remain open until the close of business on Friday 18 October 2013 or earlier by Redefine notifying the market on SENS the withdrawal of its proposal.

Marc Wainer, CEO of Redefine, says, "This will progress the company's stated intention to increase its stake in Fountainhead and exit its holding in Hyprop. We advised the market that, once we achieved REIT status, we would widen the initial offer to include more unitholders and now we are honouring our commitment. Unfortunately, regulations prohibited us from opening the offer to all unitholders."

He adds it will further align the interest between Redefine and Fountainhead unitholders.