This article is from the Australian Property Journal archive
ALIRO Group has been granted another extension of exclusive due diligence for its bid for Australian Unity Office Fund (AOF), as it looks to hammer out a revised proposal that will satisfy the takeover target’s major shareholder.
Australian Unity Office Fund’s responsible entity had already extended the exclusivity period for Aliro Group by a fortnight for it to put forward an updated proposal. An independent board committee comprising independent directors of AOF’s responsible entity currently had said it intends to unanimously recommend that AOF shareholders vote in favour of the $403 million takeover proposal, to acquire all units for $2.45 cash, with major shareholder Hume Partners – holder of a 19.97% stake – stating it would vote in favour of the proposal.
“Aliro noted that it is in discussions with Hume in relation to a potential revised proposal and the extension to the exclusivity period is required to determine if a revised proposal can be put forward which has the support of Hume,” a statement from AOF’s responsible entity yesterday said.
Aliro Group, headed by Charter Hall co-founder David Southon, entered into a confidentiality agreement and due diligence with AOF early in June.
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.
