Fountainhead terminates Growthpoint talks
Fountainhead Property Trust has terminated its talks with Growthpoint Properties regarding the latter's proposal to acquire the trust's R10.3bn portfolio.
The reason for the decision is that Redefine Properties - which holds a 45.6% stake in the trust - has indicated that it would vote against any resolutions or ballot of unit-holders 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 because of delays and uncertainties.
Fountainhead said its independent committee had been advised that Redefine's stake of 45.6% constitutes an effective blocking stake regarding the Growthpoint proposal.