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Johannesburg - South Africa's largest listed property firm Growthpoint Properties [JSE:GRT] said its Australian unit offered to buy all of the linked units in Rabinov Property Trust, as part of its strategy to more than treble its Australian investment.
Growthpoint acquired the unit, Growthpoint Properties Australia (GOZ), in 2009 and Chief Executive Norbert Sasse told Reuters last August that he wanted to lift the investment in the business to A$1bn from $A287m.
Growthpoint said Rabinov unitholders will receive 0.48 GOZ stapled securities for each Rabinov unit held and a special distribution of 2.3 cents per Rabinov unit.
The group said Rabinov's major unitholder, who owns 83% of Rabinov unit, will accept the offer.
The company said after the transaction is completed GOZ will raise $80.7m through a rights offer at an issue price of $1.90 per GOZ security.
Most South African property firms use linked units, which consist of a share and a debenture, or loan, which earn interest on rental income from the company's properties.
Growthpoint linked units in Johannesburg rose 0.29% at R17.38 in morning trade, outperforming a 0.83% decline in Johannesburg's Top-40 [JSE:TOPI] index.
Rabinov is a diversified property trust with 12 properties valued at $234.5m.
As part of the transaction, GOZ will buy 6 properties valued at $184m.
After the transaction, GOZ will have 38 properties valued at $1.7bn.
Growthpoint acquired the unit, Growthpoint Properties Australia (GOZ), in 2009 and Chief Executive Norbert Sasse told Reuters last August that he wanted to lift the investment in the business to A$1bn from $A287m.
Growthpoint said Rabinov unitholders will receive 0.48 GOZ stapled securities for each Rabinov unit held and a special distribution of 2.3 cents per Rabinov unit.
The group said Rabinov's major unitholder, who owns 83% of Rabinov unit, will accept the offer.
The company said after the transaction is completed GOZ will raise $80.7m through a rights offer at an issue price of $1.90 per GOZ security.
Most South African property firms use linked units, which consist of a share and a debenture, or loan, which earn interest on rental income from the company's properties.
Growthpoint linked units in Johannesburg rose 0.29% at R17.38 in morning trade, outperforming a 0.83% decline in Johannesburg's Top-40 [JSE:TOPI] index.
Rabinov is a diversified property trust with 12 properties valued at $234.5m.
As part of the transaction, GOZ will buy 6 properties valued at $184m.
After the transaction, GOZ will have 38 properties valued at $1.7bn.
