THABANG MOKOPANELE

Property Editor

JSE-listed property loan stock group Redefine Properties yesterday called on its unitholders to vote in favour of the acquisition of units in Hyprop Investments from Coronation as a last-ditch effort to take over Hyprop.

Redefine CEO Marc Wainer said yesterday it would be asking unitholders to vote today in favour of acquiring both Coronation Asset Management’s units in Hyprop and the units in Hyprop that it did not already own.

Redefine stands to benefit handsomely by acquiring Coronation’s Hyprop units, with the potential for the company to earn R5,55 for these units in the 2011 financial year.

The earning potential includes a distribution of R1,80 per unit for the period January to end-June, and a distribution of R3,75 per unit for the period from September 1 to the end of next August.

Last week, Hyprop’s board recommended that its unitholders should reject Redefine’s offer of R50 per combined unit for the remaining units in Hyprop it did not already own. Hyprop said its board had determined that the offer was not “fair” following an assessment of an independent review conducted by Deloitte & Touche Corporate Finance.

It said the review recommended a fair value offer range of R54 R58 per Hyprop combined unit.

The mandatory offer by Redefine at R50 per combined unit was triggered by its proposed acquisition of 19,687-million Hyprop combined units from Coronation Asset Management.

If approval is received, Redefine’s stake in Hyprop will increase from 33,3% to 45,2% and this would trigger a mandatory offer to the remaining Hyprop unitholders.

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Source: Business Day