Redefine targets Hyprop control

Posted On Thursday, 25 March 2010 02:00 Published by eProp Commercial Property News
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Redefine Properties Limited has concluded an agreement with Coronation Asset Management to acquire an additional 19,7-million units in Hyprop Investments Limited and is now canvassing minority shareholders

Marc WainerThe Coronation deal now increases Redefine’s stake in the retail focused fund from 33,3% to 45,2%, valued at R3,751-billion at current prices.

The acquisition, which is subject to Competition Authority approval, will on implementation, trigger a mandatory offer by Redefine to all remaining Hyprop unitholders at a price of R50 per unit.

Joint CEO Marc Wainer says Redefine currently has a significant stake in Hyprop and has played an integral role in its growth, acquisition strategy and strategic management. The acquisition represents an opportunity for Redefine to meaningfully increase its holding in Hyprop, and, together with the mandatory offer, should result in Redefine being in a position to exercise control over Hyprop.

“The transaction is in line with Redefine’s stated objective to own some of the best quality retail assets in the country. The acquisition should have a positive impact on Redefine due to the rerating anticipated as a result of the improvement in the overall quality of the portfolio which makes the transaction particularly beneficial,” says Wainer.

The acquisition has been structured in such a way that it is expected to be marginally dilutionary for the year to 31 August 2010, slightly enhancing for the year ending 31 August 2011 but may be marginally dilutionary thereafter. 

Redefine will canvass Hyprop unitholders in relation to the mandatory offer, and if it receives sufficient indications of support, may consider proposing a scheme of arrangement to acquire 100% of Hyprop units not already owned by Redefine at a price of R50.

Last modified on Saturday, 26 April 2014 15:31

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