Johannesburg - Property fund Hyprop Investments [JSE:HYP] said on Tuesday that it has concluded formal agreements regulating the terms of its offer to acquire the whole of Attfund Retail for R8.986bn.
The transaction is less the value of Attfund Retail's debt as at the effective date of the offer.
Hyprop said the deal will increase its portfolio to 22 properties with a gross value of about R20bn, almost doubling its size while enabling it to retain its retail focus.
Hyprop plans to issue 112 million of its combined units at R54, totalling R6.048bn, while the balance will be in cash.
The deal is subject to conditions, including Attfund Retail shareholders' approval.
On implementation of the offer, the Attfund Retail shareholders will pay a R130m transaction fee to Redefine Properties.
The fee will be settled out of the cash portion of the consideration.
The payment of the fee by Attfund will be subject to approval of an independent majority of Hyprop unitholders.