This article is from the Australian Property Journal archive
CONSOLIDATED Properties Group's Don O'Rorke is still keen on Trinity Limited. Yesterday he made a fresh takeover bid for the company's businesses.
O’Rorke who previously sold his company to Trinity then got the name back, remains Trinity’s second largest shareholder.
O’Rorke wants to buy Trinity subsidiaries Trinity Development Group Holdings and Trinity Japan Trust, in a deal he said will deliver more than $33 million in value to Trinity and its investors.
He added the offer was aimed at restoring removing litigation issues currently underway between Trinity and its development group project partners, allowing the company to focus on its core business and stated growth area of funds management.
The offer would see Consolidated Properties assume all outstanding obligations for Trinity towards the project partners and immediately cut litigation costs being incurred by Trinity on disputed recoverables involving some 13 separate parties, four of which have already resulted in litigation. To date, only two of these have been finalised, two remain unresolved and two other settlements have been paid to project partners prior to litigation.
“Trinity’s future performance hinges on resolving three issues – ongoing litigation with its aggrieved project partners, retaining management of its funds and determining its ongoing business model,” O’Rorke said.
“This offer will detach the development group from the listed company, thus removing the litigation issue, eliminating Trinity’s obligations to its aggrieved project partners, clear up Trinity’s legacy issues and allow the company to get on with what it wants to do – be a funds manager – in a decluttered environment,” he continued.
Rorke said the offer would also potentially restore Trinity’s share price to a level at least on a par with the group’s net asset backing. The company currently trades at around half of NTA.
“Realistically the Trinity board should be able to make this decision quickly. The issues facing the company have been discussed for months, everyone understands them, the company said 12 months ago that it needed to restructure,” he added.
The offer is the second attempt by O’Rorke – who owns around 12% of Trinity.
The first attempt, in November last year, was an offer for the company at 80 cents a share. Despite a then 32-cents share price, the then board rejected the offer as too low.
Trinity now trades at 12 cents a share, compared to the peak when it was at $3 per share.
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