Redefine International confirms acquisition of IHG stake from Redefine Properties

Income-focused real estate investment trust Redefine International has agreed to acquire an 8.9% stake in International Hotels Group from Redefine Properties in an all share transaction.

Earlier, the FTSE 250 firm posted underlying earnings per share of 2.75p for the year to 31 August.

Gross rental income increased 3.7% on a like-for-like basis, compared to 1.0% growth in 2016, while its dividend was fully covered with a payout ratio of 94.5%.

Application would be made for the 12.5m new shares to be issued in conjunction with the purchase of the stake in International Hotels Group to be admitted to the Premium Segment of the Official List and to trading on the London Stock Exchange's Main Market and to be listed on the Johannesburg Stock Exchange, the company said.

Admission of the new shares, which will rank pari passu with the existing ordinary shares in the company, was expected to occur on 1 November.