Redefine today announced that it has resolved not to proceed with its proposal to acquire the property portfolio of Fountainhead in order to protect and safeguard the interest of Fountainhead, Fountainhead unitholders and Redefine and to allow the board to focus fully on the active management and administration of Fountainhead. 

Fountainhead shares rally as much as 3.93% on Thursday after Growthpoint upped its offer for Fountainhead.

Listed property company Growthpoint Properties said on Thursday it had increased its offer for the property assets of the Fountainhead Property Trust from 35 Growthpoint linked units to 37 Growthpoint linked units for every 100 Fountainhead units, and reaffirmed its intention to settle or assume Fountainhead’s outstanding interest-bearing debt.

Redefine offer for Fountainhead 6% higher than previous, and represents full price for the Fountainhead portfolio and contains a higher proportion of Hyprop units

Redefine has confirmed that its indicative offer to acquire the property assets of Fountainhead Property Trust remains on the table, unchanged, notwithstanding yesterday's counter offer for this portfolio.

Growpoint, the JSE's biggest property company with a market capitalisation of about R44bn, on Tuesday started a bidding war against Redefine, the JSE's second biggest weighing in at about R29bn, for Fountainhead Property Trust's R10.3bn portfolio.

Property analysts on Wednesday criticised Redefine Properties’ planned acquisition of Fountainhead Property Trust’s R11bn portfolio, suggesting that Fountainhead’s unitholders might be short-changed.

Unitholders of Fountainhead Property Trust will soon have the final say on the offer by Redefine Properties to acquire its R11 billion property portfolio.

Redefine Properties has received Competition Tribunal approval for the acquisition of the Fountainhead Management Company and the proposed acquisition of the assets of Fountainhead; the latter some of which require 'defensive' investment