This article is from the Australian Property Journal archive
RETIREMENT and aged care operator Aevum said it is in a strong position and has officially knocked back Stockland’s approach.
Aevum has yesterday rebuffed Stockland’s $266 million takeover bid or $1.50 per share offer again.
Aevum’s board said the offer significantly undervalues Aevum and represents a big discount to Aevum’s NTA per share.
The company also said the offer does not reflect the strategic value of Aevum’s business given it is one of the largest pure retirement living and aged care companies listed on the ASX and has a significant presence in NSW.
And it pointed out that the bid does not reflect the fact that Stockland would derive substantial synergies from the proposed acquisition.
Aevum also trumped up its position, highlighting its recent profit and operating cash flow upgrade announcement following the successful merger with IOR earlier this year.
“Aevum’s upcoming FY10 results announcement will confirm that the business is performing strongly.
Aevum continues to advise shareholders to take no action in relation to Stockland’s offer,” the company concluded.
Aevum shares closed 2.27% at $1.58 yesterday.
Australian Property Journal
