This article is from the Australian Property Journal archive
PAUL Little is expanding his business into real estate agency services, making a $60.7 million takeover bid for Real Estate Corp, which owns RUN Property.
Former Toll boss Paul Little and his wife Jane Hansen own and control Little Group, a multi-faceted business which has a focus in property and has more than $1 billion worth of housing and apartments projects underway or planned.
Little has offered $0.37 in cash for each RNC share, which represents a premium of approximately 14% over the volume weighted average price of RNC’s shares in the three month period to this announcement. The offer price represents a premium of approximately 18% over the volume weighted average price of RNC’s shares in the six month period to this announcement.
The directors of RNC have unanimously recommended shareholders accept the offer, in the absence of a superior proposal.
The offer price represents a fraction of RUN Corp’s original listing, when it floated in December 2005 at $1 per share. The company was backed by powerful businessmen, including former National Australia Bank boss Frank Cicutto, Sydney estate agent John McGrath.
A year later, RUN reported a loss of $17.9 million in September 2006, despite boasting a rent roll of 20,000 properties across Brisbane, Melbourne and Sydney. And its share price dived to $0.16 cents.
In February 2007, Cicutto resigned from RUN.
McGrath followed suit and announced his split from the company, declaring his intentions to resume a property management business in NSW. McGrath had sold his Sydney residential property management rent roll to RUN in 2005 for $12 million and agreed not to compete against the company in New South Wales for five years.
In September 2007 RUN sued McGrath and several months later, they settled the matter, allowing McGrath to recommence his business in April 2008.
Property Review
