This article is from the Australian Property Journal archive
IF Cromwell Property Group is looking to capitalise from the Investa Office Fund takeover, that is unlikely to happen because Dexus will not increase its offer.
Earlier this week Cromwell acquired a 9.83% interest in IOF and CEO Paul Weightman said the acquisition is consistent with Cromwell’s stated strategy to be ready to capitalise when the right opportunities present themselves.
Dexus interpreted the statement as Cromwell looking to making an opportunistic investment to make a quick profit.
In a statement, Dexus said, “Dexus has previously advised that it does not intend to increase the proposal consideration or consent to any additional distribution (of capital or income) being paid to IOF unitholders in the absence of a competing transaction, which has not emerged,”
Dexus also warned that it could be entitled for a reimbursement fee if a rival bid emerges.
Under certain circumstances, a rival proposal could trigger a substantial break-fee of around $23 million under the terms of the Dexus proposal.
“Dexus also notes as previously disclosed that should a competing transaction emerge before 31 December 2016, Dexus may under certain circumstances be entitled to a reimbursement fee in accordance with the terms of the implementation agreement,” Dexus warned.
Australian Property Journal
