This article is from the Australian Property Journal archive
MARINER Corporation has bought a sizeable stake in Becton Property Group, less than 12 months after attempting mutiny on the board of property funds manager Viento Group.
Mariner has bought a 20% stake in Becton for $1 million.
CEO Darren Olney-Fraser said Becton shares represent good value at current prices.
“Mariner has confidence in the current Becton board and managing director, who have worked hard to keep the company trading through difficult times,” he added.
The Becton purchase is the first major investment Mariner has made, since its failed takeover bid for property funds manager Viento Group in May last year.
After buying a 10% stake in Viento, Mariner said it supported Viento’s initiatives and looked forward to working with the board. However several days later, Mariner attempted to commit mutiny, requisitioning a shareholders’ meeting to overthrow the board.
Viento Group shored up its defenses and torpedoed Mariner’s takeover bid.
Mariner said Becton has sound long-term fundamentals with six retirement villages with forecast settlements of $177 million and three residential property development projects with forecast settlements of $1.23 billion.
“Our priority is to help stabilise Becton’s shareholder base, so that its employees, customers, suppliers and bankers can have confidence in Becton’s future prospects,” Olney-Fraser said.
Becton’s current major shareholder, the liquidator of Australian Capital Reserve is currently considering the sale of ACR’s holding of stapled securities and options in Becton. ACR holds 49.9% of the stapled securities currently on issue. The exercise of its options would give ACR a total of approximately 67.3% in Becton.
Last week Becton Property Group negotiated an extension of its $2.2 million Hervey Bay and Wahroonga project debt facility with Suncorp-Metway Ltd until 31 July 2012.
However Becton has not been able to negotiate a medium term refinancing of its $73.6 million Retirement Alliance term debt facility with Suncorp, which matures on 31 July 2012. As a result, Becton with the Oman Investment Fund, are now negotiating a short term extension of this facility with Suncorp.
Property Review
