Growthpoint vs. Redefine "A Luta Continua"

The rumble for Fountainhead assets between sector heavyweights Redefine and Growthpoint, run by equally renowned dealmakers Marc Wainer and Norbert Sasse respectively looms.

The rumble for the R10 billion Fountainhead assets continues as Growthpoint Properties cuts in on takeover by rasing its offer to 37 Growthpoint linked units for every 100 Fountainhead units‚ from the previous offer of 35 linked units.

The revised offer‚ announced on Thursday‚ 21 February 2013 by Growthpoint, represented an increase of 5.7% or R605 million above the previous offer and a premium of 12.8% to the closing price of Fountainhead units on February 19 2013.

Redefine Properties had been bidding for Fountainhead’s assets after acquiring the trust’s management company in August.

Fountainhead and Redefine started exclusive talks in December. Growthpoint made an all-share approach for Fountainhead in October in what Chief Executive Officer Norbert Sasse said would be the country’s largest ever property acquisition. Fountainhead said in a separate statement there isn’t a written sale agreement with Redefine and it will review the Growthpoint offer.

South Africa’s largest property company by market value, Growthpoint issued a cautionary earlier this month indicating it remains in the race for what will be the biggest single deal ever concluded in the SA listed property space. That's despite the Fountainhead board's decision in December to proceed exclusively with Redefine's offer, giving the latter until February 22 to conclude a formal sales agreement.

Growthpoint shares declined for a second day, losing 1.7 percent to 25.45 rand by the close in Johannesburg. They have risen 3.9 percent this year, while Redefine has climbed 4.6 percent and Fountainhead 2.3 percent.

Growthpoint is in the process of finalising its interim results and these results are expected to be published towards end of February.

Redefine is the second largest listed property loan stock company listed in the real estate sector of the Johannesburg Stock Exchange (JSE) and has a market capitalisation in excess of R26 billion, while Growthpoint is the largest property company with a market capitalisation of R44 billion.