This article is from the Australian Property Journal archive
TAKEOVER target Australian Unity Office Fund’s responsible entity has extended the exclusivity period for suitor Aliro Group, which intends to put forward an updated proposal within the two-week timeframe.
Aliro Group, headed by Charter Hall co-founder David Southon, entered into a confidentiality agreement and due diligence with the takeover target a month ago.
An independent board committee comprising independent directors of AOF’s responsible entity currently intends to unanimously recommend that AOF shareholders vote in favour of the $403 million takeover proposal. AOF’s largest shareholder, Hume Partners Pty Ltd, has already stated it will use its 19.97% stake to back the deal.
Aliro’s current offer is an all-cash, non-binding indicative proposal to acquire all issued AOF units for $2.45, a 11.9% premium to the previous close.
AOF shareholders would still be able to receive a 3.8c per unit distribution for the June half, and of up to 1.5c per unit for the September quarter, and 0.5c per unit for each month after September until the trust scheme is effective.
It comes a few months after AOF’s plans to merge with Australian Unity Diversified Property Fund were knocked back by investors, scuppering the creation of a $1.1 billion portfolio. Shareholders had also thwarted a takeover bid from Charter Hall and Abacus Property Group in late 2019.
AOF had in recent months that it was having discussions with suitors and that it was set to appoint agents to solicit sale proposals for its then-$586 million portfolio of metropolitan and CBD office buildings.
