Bloomberg News

Growthpoint Raises Fountainhead Bid on Rival Exclusivity End

February 21, 2013

Growthpoint Properties Ltd. (GRT), South Africa’s biggest real-estate company by market value, raised its bid for Fountainhead Property Trust (FPT) as exclusive talks with a rival bidder end tomorrow.

The revised offer is 5.7 percent, or 605 million rand ($68 million), higher than its previous bid, the Johannesburg-based company said in a statement today. The offer of 37 Growthpoint linked units for every 100 Fountainhead units is 8.6 percent higher than a bid by Redefine Properties Ltd. (RDF), Growthpoint said.

Fountainhead and Redefine started exclusive talks in December. Growthpoint submitted a bid for Fountainhead in October. Fountainhead said in a separate statement there isn’t a written sale agreement with Redefine and it will review the Growthpoint offer.

Growthpoint shares declined for a second day, losing 1.7 percent to 25.45 rand by the close in Johannesburg. They have risen 3.9 percent this year, while Redefine has climbed 4.6 percent and Fountainhead 2.3 percent.

To contact the reporter on this story: Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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