Property fund manager Redefine to buy Wichford

The long-mooted deal would see Wichford make an all-share offer for Redefine International’s share capital at 7.2 Wichford shares for each Redefine International share.
The two parties had agreed to the deal in principle, but there was no certainty of a formal offer, they said.

AIM-quoted Redefine International is 57 percent owned by South African property company Redefine Properties, which has a market capitalisation of £1.7bn.

Wichford said in a statement it expected the merger to complete in the third-quarter of 2011, with the enlarged company quoted on LSE’s main boards.

About 2,973 million new Wichford shares would be issued to Redefine International shareholders. Redefine International’s 231 million shares in Wichford would be cancelled.
Redefine Properties would become the majority shareholder in the enlarged company with a 64 percent stake, Wichford said.

The enlarged company would also have a “commitment from Redefine Properties International and Redefine Properties to support a fully pre-emptive capital raise by the enlarged company in the future,” Wichford said.

The deal values Wichford shares at 7.2 pence each, a 7 percent premium to their March 22 closing price of 6.7 pence. It values Redefine International shares at 48.2 pence each, 6 percent below their March 22 closing price.