RDI increases its stake in hotel group to 74.1%
REDEFINE International (RDI), the property firm with a primary listing on the London Stock Exchange and secondary listing on the JSE, has increased its shareholding in listed International Hotel Properties (IHL) to 74.1 percent from 58.9 percent.
The company said on Friday that it had acquired the additional 15.2 percent shareholding, amounting to almost 8.5 million IHL shares, from JSE-listed Redefine Properties.
The remaining 25.9 percent of IHL is held by Tsogo Sun, South Africa’s largest hotel chain. The latest transaction removes Redefine Properties, the major shareholder in RDI with a 29.79 percent stake, as a shareholder in IHL.
It follows RDI in October acquiring 5 million shares in IHL from Redefine Properties representing 0.7 percent of the company’s issued share capital and earlier this month a further 3.42 percent stake in IHL from Redefine Properties following RDI’s acquisition of an additional 29.34 percent shareholding in IHL under a scheme of arrangement.
RDI said the additional IHL shares purchased from Redefine Properties on Friday were acquired on the same terms as the previously announced scheme of arrangement and would be settled through the issue of 2.49 million new ordinary shares in RDI and and a cash payment of £7.5 million (R138.28m).
The 2.49 million new ordinary shares in RDI represents 0.13 percent of RDI’s current issued share capital and result in Redefine Properties holding 559.4 million shares in or 29.62 percent of RDI.
RDI said that it had in total acquired an additional 56.9 percent interest in IHL for a total consideration value of £31.8m that had been settled through the issue of 60.9 million new RDI shares, representing 3.3 percent of the company’s issued share capital, and a cash payment of £7.5m. The overall investment in IHL would be both earnings and net asset value accretive and was expected to deliver a yield on equity of more than 10 percent.
The IHL portfolio comprises nine quality UK hotels valued at end-February at £104.4m that were expected to complement RDI’s existing hotels portfolio.
RDI owns a portfolio of UK Photo: Simphiwe Mbokazi/ANA shopping centres, UK retail parks, UK offices, UK logistics, UK hotels and German retail property assets independently valued at £1.5bn.
Shares in RDI dropped 1.18 percent on Friday to close at R6.72 on the JSE.