Redefine welcomes JSE's Growthpoint ruling

The JSE had declined Growthpoint Properties' request for a ruling that Redefine be precluded from voting on all resolutions relating to Growthpoint's bid for Fountainhead's R10bn portfolio‚ Redefine said on Monday (22 April).

Redefine and Growthpoint have been in a bidding war for Fountainhead's assets since last October but Redefine withdrew its offer last month, citing the negative effects this had on its ability to run Fountainhead's business due to delays and uncertainties.

Redefine bought Fountainhead's management company for R660m last August before opening talks on the trust's assets.

Redefine's 46% unit-holding - which would make it difficult for Growthpoint to win a unit-holder vote to secure the assets - led Fountainhead's independent committee to terminate its engagement with Growthpoint last month.

Last week‚ Growthpoint said it had referred the dispute to the JSE and requested that Redefine be precluded from voting on all resolutions‚ given the "conflict of interest between Redefine‚ the management company and Fountainhead unit-holders".

Wainer said on Monday (22 April) that before Redefine withdrew its offer and acquired the stake‚ "we got a legal opinion as to whether we would be able to vote our shares‚ which was unequivocal. We had no doubt that the JSE would come to this decision."

He said his company was not concerned about the "host of allegations" Growthpoint had made to both the JSE and the Financial Services Board‚ as Redefine acted lawfully and within the JSE's rules at all times.

Growthpoint's submission to the JSE on whether Redefine could vote its units and whether Redefine could be blocked from voting on the required resolution was questionable. Wainer says that the request falls totally outside of the ambit of the JSE as it's a statutory thing.

"The JSE, in its response, says the submission fails on that alone so one wonders if Growthpoint and its advisers are aware of the legalities around Cisca (the Collective Investment Schemes Control Act)‚ or whether they have another agenda‚" Wainer said.

Redefine said it did not believe it was necessary for its unit-holders to exercise caution when trading their units.