Fountainhead cancels talks on Growthpoint offer

Fountainhead Property Trust (FPT) has terminated its engagement with Growthpoint Properties (GRT) regarding the latter’s proposal to acquire the trust’s R10.3bn portfolio.

The principal reason for the decision is that Redefine Properties (RDF) - which holds a 45.6% stake in the trust - has indicated that it would vote against any resolutions or ballot of unitholders to approve Growthpoint’s proposal.

Redefine had been involved in a tussle with Growthpoint to acquire the trust’s assets‚ before pulling out of the battle on March 11‚ citing "no resolution in sight"‚ and the negative effect it was having on its ability to run Fountainhead’s business due to delays and uncertainty.

Fountainhead said its independent committee had been advised that Redefine’s stake of 45.6% constitutes an effective blocking stake regarding the Growthpoint proposal.