This article is from the Australian Property Journal archive
STOCKLAND is religiously sticking by its three R strategy (residential, retirement and retail) and is no longer interested in rival GPT Group.
Stockland has offered to sell its 13% stake in GPT to institutional investors.
The sale ends a two year long ongoing speculation that Stockland was going mount a takeover bid for GPT.
In November 2008, four years after abandoning its original bid after GPT decided to marry up with Babcock & Brown, Stockland acquired the 12.7% stake in GPT as a “passive investment” at $1.07 per share.
At the time, Stockland also bought strategic stakes in FKP Property Group and retirement living company Aevum, which is now almost owned by Stockland.
Stockland acquired the stake from Perennial Investments in a complex deal.
Since that time, GPT’s share price has risen steadily from around $1.11 to a 52-week high price of $3.35. On the other hand, Stockland’s share price was around $3.90 at the same time and yesterday it closed 4 cents lower at $3.79.
After GPT’s share consolidation, Stockland’s stake was priced at $3.60 per share and it is now worth $6.80 per share.
The base bookbuild price of $2.72 per share represents a small discount to GPT’s trading price, which closed 7 cents lower yesterday at $2.85.
The bookbuild is expected bring in $600 million to $800 million, which represents a $200 million loss for Stockland.
Meanwhile Stockland did make a move on Aevum, one of the three companies it acquired strategic interests back in 2008.
Yesterday Stockland lifted its stake in Aevum to 82.83% after all directors in the company accepted the offer for their personal Aevum shareholdings.
Stockland’s managing director Matthew Quinn said remaining Aevum shareholders should feel confident in accepting the offer as their directors have now accepted.
“The offer is due to close this week and we have not yet committed to any further extension,” he added.
Stockland’s Offer is currently scheduled to close at 7.00pm (Sydney time) on Friday 29 October 2010, unless further extended.
Stockland still holds a 14.9% stake in FKP Property Group.
Australian Property Journal
