This article is from the Australian Property Journal archive
BROOKFIELD Asset Management has sweetened its takeover bid for Thakral Holdings, lifting its offer from 70 cents per security to 81 cents.
Thakral’s independent directors said the new offer is reasonable, but remains unfair to the true value of Thakral, which its independent expert Grant Samuel believes is between 88 cents and 96 cents.
Yesterday Brookfield increased its takeover bid from $410 million to $475 million.
Whilst the latest offer is below Grant Samuel’s valuation of $515 and $570 million, Thakral’s independent directors have unanimously recommended investors accept the offer, unless a superior bid emerges.
In a letter to shareholders, Thakral’s independent directors said over the four months since Brookfield made the bid, they have conducted an extensive process to solicit alternate proposals and a number of parties have engaged in detailed discussions, although they did not disclose the identities.
They said as a result of the extensive process Brookfield has decided to increase the offer to 81 cents, which represents a 16% premium over the current offer price of 70 cents and a substantial premium of 40% to Thakral’s volume weighted average trading price in the three months period prior to the announcement of the offer on 19 April 2012.
“The independent expert, Grant Samuel, has opined that the Brookfield offer of 70 cents per stapled security remains neither fair nor reasonable. However, the Brookfield offer with the conditional increase to 81 cents is reasonable, in the absence of a superior offer, although not fair,” the directors said.
The directors revealed that significant Thakral securityholders and the receivers, PPB Advisory, who collectively represent approximately 69.4% of the issued Thakral securities have confirmed their intention to support the conditional increase.
Meanwhile the offer period has been extended from the end of this month to 31 October 2012 and for the takeover to go ahead, 90% of Thakral investor have to vote in favour.
Property Review
