This article is from the Australian Property Journal archive
PATRIACH of the Grollo empire, Bruno Grollo is setting up for a potential takeover of APN Property Group, as the group prepares to undergo big changes since listing in June 2005.
Grollo has increased his stake in APD to approximately 14%, after purchasing an additional 6% of APD from entities associated with executive directors, Clive Appleton and Howard Brenchley.
In addition, separate companies associated with non-executive chairman Chris Aylward and Grollo have acquired additional stakes of 3.6% and 3% respectively in the APN/UKA European Retail Property Group.
As a result, Aylward will become the new managing director of APD and Appleton has stepped down.
But he will remain as an executive director to look after the European business.
Aylward said APD has conducted a strategic review of its business and is now in the process of implementing a number of important changes.
“This review included seeking the advice of Caliburn Partnership who provided an independent assessment of the strategic options for APD’s business.
“The review considered the retail, wholesale and listed businesses within APD in light of the current market environment,” he added.
But Aylward did not provide details of the strategic review or reasons behind Grollo’s decision to increase his stake in APD.
“The board remains committed to the Company’s business plan and will seek to prudently grow the Company in the forthcoming period,” Aylward said.
APD’s share price closed 2.5 cents lower at $1.05 last Friday. Its 52-week high was $3.60 in November last year.
The review comes after APD lowered its profit expectations for the FY08.
Company Secretary Peter Nicholson said the group expects to deliver a profit after tax for the year to fall within the range of $9.5 million to $11.0 million, likely to be $10.1 million, which will be lower when compared to $17.4 million posted in full year to June 2007.
Nicholson also said it could potentially write down $4 million worth investments in its managed vehicle APN/UKA European Retail Property, due to the trust’s poor performance.
Meanwhile from May 01, John Harvey the current non executive director will replace Aylward and become non-executive chairman of APD, and Brenchley will enter a new two year contract remaining head of retail, chief investment officer and an executive director and Michael Doble will become head of investments and deputy CIO.
Australian Property Journal
