29th Jun 2020 17:07
(Alliance News) - Redefine Properties Ltd said Tuesday it has agreed to sell the shares it holds in 111.9 million shares in London and Johannesburg-listed RDI REIT PLC for 95 pence per share, or GBP106.3 million in total.
The shares to be sold represents a 29% stake in RDI REIT, and will be sold to private investment firm Starwood Capital Group.
In addition, Redefine has announced a tender offer made to the bondholders of its outstanding EUR150 million 1.5% secured exchangeable bonds due September 2021, which can be exchanged into shares in RDI, of which EUR117.2 million is outstanding.
The sale of share is conditional on Redefine repurchasing 85% of the principal amount of the bonds originally issued.
The share disposal and redemption of its bonds in relation to the tender offer is part of Redefine's loan-to-value improvement plan, which includes the disposal of ZAR8 billion of non-core assets in order to right size its asset footprint to its constrained capital base.
In addition, by exiting the UK real estate market, Redefine will also simplify its investment proposition and improve its risk profile.
Shares in Redefine Properties closed 1.3% lower at ZAR3.06, while RDI REIT's Johannesburg shares closed 4.8% higher at ZAR17.50. In London, RDI REIT's shares closed 14% higher at 84.0 pence on Monday.
By Dayo Laniyan; [email protected]
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