Wedding bells for Redefine, Spearhead

Posted On Tuesday, 07 November 2006 02:00 Published by eProp Commercial Property News
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The Competition Commission has approved of the merger of Redefine Income Fund and Spearhead Property Holdings without condition

  Brian AzizollahoffThe Competition Commission has recommended that the Competition Tribunal approve the merger of listed property loan stock companies Redefine Income Fund and Spearhead Property Holdings without condition.

There now seems to be little standing in the way of the transaction going ahead, with Spearhead and Redefine unitholders having already given the deal the green light.

The tribunal will hear the matter on Thursday at 10am and then make a decision.

Redefine CEO Brian Azizollahoff said on Friday that assuming the tribunal upheld the recommendation, the matter would be referred to the high court for sanction.

"There is no reason to believe the tribunal won't uphold the recommendation," said Azizollahoff. He said it appeared the deal would be finalised by the middle of the month and that Spearhead should be absorbed into Redefine by late this month.

Redefine intends acquiring the entire share capital of Spearhead.

The company announced in July it was making a takeover bid for Cape-Town based Spearhead in a deal valued at R1,3bn.

Redefine, which is asset-managed by listed property asset manager Madison Property Fund Managers, said at the time if the transaction was successful, it would boost Redefine's total assets to just more than R7bn.

Redefine is offering 6,18 of its linked units for every Spearhead linked unit, or R31 in cash.

Spearhead CEO Mike Flax will be joining Madison as an executive director and other Spearhead executives will also join the Madison stable.

Flax said at the time the transaction was announced that Redefine was one of the most liquid property funds on the JSE.

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