This article is from the Australian Property Journal archive
A FUND managed by the world’s biggest property investor Blackstone Real Estate has made a $435.54 million takeover bid for ASX-listed Astro Japan Property Group.
Blackstone’s managed fund Jetsons Holding has offered $7.181 per security for AJA, a substantial premium to the trust’s previous closing price of $6.35.
The bid implies a property portfolio valuation of JPY98.642 billion, reflecting a 2.38% premium to recently completed independent valuations.
In addition to the bid, AJA securityholders will also receive the normal half yearly distribution of 21 cents per Security and distributions currently estimated at 14 cents per security on the wind up of the trust in January 2018.
AJA’s board has unanimously recommended securityholders vote in favour of the Blackstone proposal, in the absence of a superior proposal.
Senior advisor Eric Lucas said AJA’s directors intend to vote securities they own or control in favour of the Blackstone proposal.
He said that independent expert Grant Samuel concluded that the proposal is fair and reasonable.
“The Blackstone proposal delivers Astro securityholders with an asset premium that reflects the quality and scarcity of our underlying real estate portfolio, and net proceeds that provide cash liquidity at a material premium to recent trading levels,” AJA chairman Allan McDonald said.
In late 2016, an affiliate of Lone Star Fund V made an approach to AJA to acquire the properties beneficially owned by it. The board did not consider that the Lone Star proposal would deliver acceptable value for securityholders. Since the approach by Lone Star, the board has received a number of further approaches to acquire AJA’s portfolio.
Australian Property Journal
