This article is from the Australian Property Journal archive
BROOKFIELD Asset Management has agreed to promote a competitive auction for the 38.6% interest in the Thakral Holdings, following an intervention by the corporate regulator.
Bidco 1 Pty Ltd, a Brookfield affiliate company is the holder of debentures, which was previously held by the Thakral family and was placed in the hands of Brett Lord and Christopher Hill of PPB Advisory as receivers and managers.
However because of Bicco’s relationship with Brookfield, the stake will not necessarily be accepted into the takeover offer, following an Australian Securities and Investments intervention.
Following ASIC’s intervention, Brookfield has agreed to leave the offer for the stake for a minimum of two months.
Brookfield has also committed not to waive the 50.01% minimum acceptance condition for a minimum of 12 months, and it will make an independent recommendation to the security trustee to accept the most superior offer.
Tharkal said that these arrangements will give parties potentially interested in bidding for Thakral to participate in a competitive process.
“Furthermore the arrangements provide THG independent directors’ committee and its advisers time to explore and assess alternatives that may be available to maximise security holder value,” he added.
Thakral maintains that the Brookfield offer of 70 cents per stapled security undervalues the company.
Property Review
