S.Africa's Growthpoint to buy Fountainhead

JOHANNESBURG Oct 23 (Reuters) - South Africa's biggest property group Growthpoint offered to buy rival Fountainhead Properties on Tuesday, in a cash and share deal that values the company at more than 10 billion rand ($1.14 billion).

Growthpoint will offer 35 shares for every 100 held by Fountainhead shareholders. Growthpoint would also pay off Fountainhead's existing debt.

The offer ratio is 15 percent premium to Fountainhead's closing price on Tuesday.

The deal, if concluded, would create the 26th largest company on the South African bourse with a market value of more than 54 million rand ($6.15 million). ($1 = 8.7745 South African rand) (Reporting by Tiisetso Motsoeneng; editing by David Dolan)