This article is from the Australian Property Journal archive
GROWTHPOINT Properties Australia has emerged as the bidder vying for the GPT Metro Office Fund and yesterday Growthpoint re-launched its $290 million plus takeover bid.
Growthpoint confirmed that last month it had submitted a proposal to GPT Metro but Growthpoint later withdrew the bid because GPT Metro had to revalue its portfolio.
The initial proposal comprised 0.3736 Growthpoint securities and $1.15 cash per GMF unit which, based on Growthpoint’s one-month VWAP1 of $3.08 per security up to and including 3 March 2016, implied consideration of $2.30 per GPT Metro unit.
Growthpoint’s managing director Tim Collyer said Growthpoint has reviewed the revaluation results and does not believe it presents any new material information that impacts Growthpoint’s view on the underlying value of the GMF portfolio.
“GPT Metro continues to trade at a material 8.5% discount to NTA, despite the revaluation uplift and receipt of an unsolicited proposal (albeit withdrawn).
“The numerous qualitative benefits of the transaction to GMF unitholders including markedly improved portfolio size and diversification, earnings accretion / enhanced growth outlook, management alignment and increased liquidity remain irrespective of the property revaluations announced in the GMF announcement,” Collyer pointed out.
As a result, Growthpoint has resubmitted its proposal.
Based on Growthpoint’s undisturbed one-month VWAP of $3.11 per security up to and including 1 April 2016, the proposal implies consideration of $2.31 per GPT Metro unit.
Revelations of the fresh bid pushed up GPT Metro’s share price, closing 9 cents or 4.19% higher at $2.24.
Collyer said Growthpoint’s proposal represents a compelling value proposition.
“Consistent with Growthpoint’s strategy, the proposed transaction represents an opportunity to carefully expand and diversify Growthpoint’s portfolio in an accretive and cost effective manner; however, any proposal must enhance value for Growthpoint securityholders.
“We look forward to re-engaging with the independent directors of GMF to determine if a transaction for the mutual benefit of GMF and Growthpoint securityholders can be agreed.” Collyer said.
Australian Property Journal
