This article is from the Australian Property Journal archive
EUMUNDI has set its sight dominating the investment market in Queensland by buying a controlling stake in Honeycombes Property Group.
Eumundi’s chairman Joe Ganim said the acquisition will capitalise on the synergies that the Eumundi Board believe exist between Honeycombes Property Group and Eumundi.
“Honeycombes Property Group has an established residential development business which will complement and enhance the commercial property portfolio that Eumundi has built over recent years.
“Eumundi is principally a commercial property holding company with assets that have development capability,” he added. “The acquisition will provide Eumundi with the development capability to capitalise on the development opportunities that it currently holds in its commercial property assets as well as a prominent position within the residential property development market.”
Eumundi will make an offer to each of the existing shareholders of Honeycombes Property Group and Honeycombes Ownership, which will comprise the issue of 287 fully paid ordinary shares in Eumundi for every share held in Honeycombes and will be made by personal offer to the shareholders of Honeycombes and Honeycombes Ownership.
Upon completion of the acquisition, Eumundi will be owned 61.5% by existing Eumundi Shareholders and 38.5% by Honeycombes Shareholders. The remaining 3% will be subject to a Put and Call Option which will entitle Eumundi to acquire those shares in certain circumstances.
The new board of Eumundi will initially be Eumundi’s current Chairman, Joe Ganim, and the managing director and chief executive officer will be Honeycombe’s current managing director, Peter Honeycombe.
The acquisition is subject to a number of conditions precedent, including the approval of Eumundi, Honeycombes and Honeycombes Ownership shareholders to the transaction.
Australian Property Journal
