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Wichford, Redefine mull tie-up

Mar 23 2011 11:49
I-Net Bridge
Johannesburg - Redefine International plc said on Wednesday that it had reached an understanding in principle with Wichford regarding a potential merger of the two companies.

The deal would create an enlarged property company listed on the London Stock Exchange.

Wichford, a property investment company based in the UK, is expected to make an all-share offer for the entire issued and to-be-issued share capital of Redefine at an exchange ratio of 7.2 Wichford shares for every Redefine share.

On completion of the merger, based on the existing number of Redefine shares in issue, about 2.973 million new Wichford shares would be issued to Redefine shareholders.

Redefine's existing shareholding of about 231 million shares in Wichford would be cancelled, so the net increase in the issued share capital of Wichford would be about 2.742 million.

The enlarged company would therefore have about 3.804 million shares in issue.

The enlarged entity would seek to distribute the majority of its recurring net income in the form of dividends.

Redefine chairperson Gavin Tipper said: "We are delighted to be announcing the planned combination with Wichford. The merger is consistent with our ongoing strategy to build a larger, more liquid company focused on diversified, income-producing investment properties.

"We believe that the enlarged company will be well placed to deliver attractive cash returns for investors and growth over the long term."

Philippe de Nicolay, chairperson of Wichford, said: "We are pleased to announce today the key terms of the proposed merger agreed in principle with the board of Redefine. Following the completion of Wichford's strategic review of options, we have concluded that the proposed merger delivers the most attractive outcome for Wichford shareholders."

property market


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