Redefine tries another attempt for Fountainhead assets

Redefine Properties CEO, Andrew Konig says we are extremely pleased with the level of support received by the Fountainhead unitholders

Redefine Properties on Friday said it had started an attempt to acquire Fountainhead’s retail-dominated portfolio valued at over R12 billion. This comes after it received support from Fountainhead unitholders.

Redefine had emerged as the victor in the long-running takeover battle with Growthpoint Properties pursuing assets for Fountainhead, but it falled short in taking the home prize last year.

Last week, Redefine announced that following an approach from the largest institutional unitholder in Fountainhead, that did not support the previous transaction, Redefine has received an irrevocable undertaking that they will vote in favour of the acquisition by Redefine of all Fountainhead’s assets in exchange for 85 new Redefine shares for every 100 Fountainhead units in issue and the assumption of all of Fountainhead’s liabilities.

Redefine has canvassed other significant Fountainhead unitholders and has now obtained irrevocable undertakings to support the revised proposal from Catalyst Fund, Old Mutual, Absa Asset Management, the Eskom Pension and Provident Fund and Nedbank Capital, representing 34.1% of the votes capable of voting on the resolution to approve the revised proposal.

In addition, Redefine has also obtained non-binding indications of support from Fountainhead unitholders (based on the latest available register) that hold a further 14.3% of the votes capable of voting on the resolution to approve the revised proposal. 

Andrew Konig, Redefine Properties Chief Executive Officer comments: “We are extremely pleased with the level of support received by the Fountainhead unitholders.  Following the disappointment of the unsuccessful attempt in the latter part of 2014 (71% support received), Redefine is ready for another attempt at completing this transaction.”