This article is from the Australian Property Journal archive
ASX-listed Irongate has rejected another takeover proposal from its key shareholder, Tony Pitt’s 360 Capital.
360 Capital’s latest bid the real estate platform, which owns a $1.3 billion portfolio of office and industrial assets, landed on Friday at $1.6547 per security – or headline price of $1.70, less a distribution – an uplift on the original indicative proposal made in the middle of October that Irongate rejected that bid later in the month.
Irongate (IAP) said the revised proposal an increase of “only 3.1% from the original indicative proposal…with no changes to its highly conditional terms”.
“The IAP board has consulted with its advisors and has unanimously concluded that the revised indicative proposal continues to materially undervalue IAP and therefore does not represent a compelling proposition for securityholders.”
In response, 360 Capital – which is Irongate’s biggest shareholder with a near 20% stake – said it is “disappointed the IAP board has again chosen not to engage with 360 Capital despite the improved indicative proposal representing an attractive premium across a number of valuation metrics as evidenced in the attached materials which were provided to the IAP board.
“Furthermore, 360 Capital is surprised the IAP Board has not given its securityholders the opportunity to be aware of and to consider the improved indicative proposal before releasing its improved NBIO rejection announcement.”
Irongate last week sold off the Canberra building at the centre of Plan Mercator – designed to protect the Prime Minister and cabinet, Governor-General as well as maintain government operations in the event of a catastrophic attack or national security attack on the national capital – for $36 million to Charter Hall.
Mid-year, it had bought the federal government’s audit office building for $73,750,000.
