Redefine to buy Wichford

Property investor and fund manager Redefine International Ltd (RDFI.L) has agreed a reverse takeover of UK property investment company Wichford (WICH.L), securing a listing on the London Stock Exchange's main board.

The long-mooted deal would see Wichford make an all-share offer for Redefine International's share capital at 7.2 Wichford shares for each Redefine International share.

AIM-quoted Redefine International is 57 percent owned by South African property company Redefine Properties (RDFJ.J), which has a market capitalisation of 1.7 billion pounds ($2.8 billion).

Wichford said in a statement on Wednesday it expects the merger to complete in the third-quarter of 2011, with the enlarged company quoted on London Stock Exchange's main boards.

At 0911 GMT, shares in Wichford were up 3.1 percent at 6.9 pence, outperforming a 0.2 percent rise in the broader index of UK property stocks .FTELUK Redefine International's shares were flat at 51.5 pence.

About 2,973 million new Wichford shares would be issued to Redefine International shareholders. Redefine International's 231 million shares in Wichford would be cancelled.

Redefine Properties would become the majority shareholder in the enlarged company with a 64 percent stake, Wichford said.

The enlarged company would also have a "commitment from Redefine Properties International and Redefine Properties to support a fully pre-emptive capital raise by the enlarged company in the future," Wichford said.

The deal values Wichford shares at 7.2 pence each, a 7 percent premium to their March 22 closing price of 6.7 pence. It values Redefine International shares at 48.2 pence each, 6 percent below their March 22 closing price. (See www.reutersrealestate.com for the global service for real estate professionals from Reuters) (Reporting by Andrew Macdonald; editing by Laurence Fletcher) ($1=.6108 Pound)

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