JOHANNESBURG Oct 23 (Reuters) – South Africa’s biggest
property group Growthpoint offered to buy rival
Fountainhead Properties on Tuesday, in a cash and share
deal that values the company at more than 10 billion rand ($1.14
billion).
Growthpoint will offer 35 shares for every 100 held by
Fountainhead shareholders. Growthpoint would also pay off
Fountainhead’s existing debt.
The offer ratio is 15 percent premium to Fountainhead’s
closing price on Tuesday.
The deal, if concluded, would create the 26th largest
company on the South African bourse with a market value of more
than 54 million rand ($6.15 million).
($1 = 8.7745 South African rand)
(Reporting by Tiisetso Motsoeneng; editing by David Dolan)
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