Redefine posts pre-listing statement regarding proposed JSE listing
Following receipt of approval from the South African Reserve Bank (SARB), Redefine International has posted a pre-listing statement to all the unit holders of its South African holding company, Redefine Properties International Limited (RIN), regarding the inward listing of Redefine International on the Johannesburg Stock Exchange (JSE).
RIN unit holders will also receive a circular containing a notice of a general meeting to be held on 18 October 2013 at the registered office of RIN, to approve the proposed unbundling by RIN of its sole asset, being a 61.8 per cent holding in Redefine International following the inward listing of Redefine International on the JSE and to approve the proposed subsequent de-listing of RIN from the JSE and the winding up of RIN.
Should the transaction be approved Redefine International will secure a secondary listing on the JSE by way of introduction, following which Redefine International will hold a primary listing on the Main Market of the London Stock Exchange and a secondary listing on the “Real Estate – Real Estate Holding and Development” sector of the Main Board of the JSE.
The proposed listing date of Redefine International on the JSE is 28 October 2013.
Redefine International is currently listed on the Main Market of the LSE and its South African holding company, RIN, is listed on the Main Board of the JSE, which results in two points of entry to invest into the same underlying assets. This structure arose at a time when it was not possible to secure an inward listing of Redefine International on the JSE due to the then prevailing policies of the SARB.
The boards of directors of RIN and Redefine International are of the view that the current structure limits the liquidity and tradability of RIN linked units and Redefine International shares. In addition, having two listed points of entry to invest into the same Group duplicates costs (such as listing and directors’ fees) with no real benefit to shareholders.
Following the receipt of approval from the SARB it is now possible to secure an inward listing of Redefine International on the JSE. The inward listing of Redefine International is proposed on the basis that it will address these concerns and is expected to enhance the group’s ability to raise capital and create shareholder value.
The inward listing of Redefine International on the JSE will conclude the initial phase of the group’s proposed restructuring.
As previously announced, it is the intention of the company to complete the restructuring by converting to UK REIT status and internalising the management function.
A further announcement will be made once all arrangements in respect of the above are finalised. The internalisation of management will be subject to the approval of Redefine International shareholders.