This article is from the Australian Property Journal archive
SUNSUPER and Discovery Parks latest sweetener has won over the board of Aspen Parks Property Fund recommending securityholders accept the latest offer of 63 cents per security.
In a letter to shareholders, the APPF board said after carefully assessing the commercial terms of the Aspen Group/APPF merger proposal and the rival Sunsuper/Discovery Parks alternative offer, the board has recommended investors accept the offer in the absence of a superior proposal.
The board’s blessing is a major turnaround after Sunsuper/Discovery Parks accused APPF of not acting in the interest of investors by recommending the Aspen Group merger proposal.
The revised offer represents a 38% premium to the APPF NAV per security of $0.4571; a 5% or 3 cent premium to the implied value of the merger proposal of $0.60 to $0.62.
“The APPF Board Committee believes that APPF securityholders who would prefer to maintain exposure to the value for money accommodation asset class would be better off accepting the certain cash consideration offered under the Discovery offer and investing these proceeds in comparable AREIT peers.
“In addition, the APPF Board Committee notes that it has been advised by KPMG Corporate Finance, Independent Expert for the Merger Proposal, that in its opinion, having considered the revised terms of the Discovery Offer, it considers the Merger Proposal is no longer superior to the Discovery Offer,” the APPF board said.
“As a result of the APPF Board Committee unanimously recommending the revised offer from Discovery Parks, each member of the APPF Board Committee withdraws their recommendation that APPF securityholders vote in favour of the a merger proposal,”
Aspen CEO Clem Salwin said Aspen has made no decision in relation to the offer, including with respect to its 42% interest in APPF.
Aspen is also the manager of APPF, with a management contract in place until April 2019.
Australian Property Journal
