This article is from the Australian Property Journal archive
LISTED real estate agency McGrath is set to go private after shareholders voted overwhelmingly in favour of Knight Frank Australia and Bayleys $95.5 million takeover bid.
At a meeting of shareholders yesterday, 85.71% of Shareholders present voted in favour and 99.05% of total votes cast were in favour.
McGrath shareholders will have the option to receive $0.60 cash per McGrath share, or an unlisted scrip alternative, or a combination thereof. The unlisted scrip alternative is shares in an unlisted newly incorporated entity which will indirectly own 100% of McGrath.
The $0.60 cash offer represents a premium of 27.7% to McGrath’s closing share price of $0.47 on 22 March 2024 and a 34.2% premium to the six-month VWAP of $0.45.
The sale closes the book on a rollercoaster ride for the agency.
The $0.60 sale price is a fraction of the $2.10 listing price in December 2015 when the agency was valued at $290 million at the time of listing.
McGrath share price never recovered to its much-hyped listing price after taking a tumble in April 2016 when the agency downgraded its earnings forecast, falling to $0.90 cents.
In 2018 Chinese-backed developer Aqualand stepped with the purchase of a 15% stake in the company.
Yesterday in addressing his final shareholders meeting, McGrath chair Peter Lewis thanked shareholders for the support of the company, which he said “is now in a position to consolidate its leading position in the industry with the support of two well‐resourced and respected major shareholders.”
“McGrath is in a strong, profitable position with a very experienced and committed
management team under the continued guidance of CEO John McGrath,” Lewis concluded.
