Hyprop turns down Redefine's mandatory offer
Retail property fund Hyprop Investments, on Wednesday announced that its board is recommending that combined unitholders reject the mandatory offer by Redefine Properties to Hyprop minority unitholders.

The board has determined that the offer is not fair following an assessment of an independent review conducted by Deloitte & Touche Corporate Finance.

The independent review, considering the terms and conditions of the offer and based on their valuation procedures, recommended a fair value range of R54 to R58 per Hyprop combined unit.

The mandatory offer by Redefine Properties at R50 per combined unit was triggered as a result of Redefine's proposed acquisition of 19 686 558 Hyprop combined units from Coronation Asset Management (Pty) Ltd, as announced in March 2010.

Hyprop said in assessing the price to be realised should they sell their Hyprop combined units in terms of the offer, Hyprop minority combined unitholders should deduct an estimated amount for the interim distribution from the R50 being offered by Redefine.

This will facilitate an approximation of a clean price comparable to the R50 that was received by Coronation.

"To the extent that Redefine acquires sufficient Hyprop combined units to afford Redefine control of Hyprop, the Board is of the view that the price paid should include an appropriate premium for control, which should be approximately 20% above the 30 day VWAP at which Hyprop combined units traded prior to Redefine's announcement of the Acquisition.

"This would equate to an indicative price per combined unit of approximately R58.

Hyprop combined unitholders should also be cognisant of the fact that the listed property sector has increased 5.4% since Redefine's announcement of the Acquisition was made (based on the movement in the SA Listed Property Index from 24 March to 28 July 2010)," it said in a statement.

Furthermore, any take-up by Hyprop combined unitholders of the Offer will further increase Redefine's stake in Hyprop, which will in turn increase the likelihood of Redefine eventually absorbing Hyprop entirely, Hyprop said.

Source: I-Net Bridge

Article from: www.eprop.co.za