This article is from the Australian Property Journal archive
OASIS Star, a wholly owned subsidiary of Tian An China Investments Company Limited (TACI), has made a $112 million takeover bid for one of Australia’s oldest listed property developers.
The Hong Kong incorporated Oasis Star has made a bid of $1.30 per share for Tian An Australia, formerly known as Port Bouvard.
Oasis Star currently has an interest of 34.46% in TIA.
The bid is a significant premium to the TIA’s current trading price of 86.5 cents as at the end of July 24.
TIA was formerly known as Port Bouvard, once of Australia’s oldest listed property companies. It was floated in December 11 1985.
In September 2012, Port Bouvard faced its worst fears after posting a net loss of $103.46 million FY2012 and warned that it only had cash reserves to last until November.
In November, the company breached one of its facility agreements.
The company embarked on a restructure and renamed itself as PBD Developments.
In July 2015, PBD Developments’ largest shareholder, Malaysia’s Mulpha International sold its 19.9% stake at 1.5 cents per share to Tian An.
The company laid low for two years and was subsequently renamed Tian An Australia in April 2016. It was not until December last year, when it made a $35 million play for a 1.26 hectare Enfield site at 4 Mitchell St in inner western Sydney. The transaction was the company’s first acquisition since changing its name.
In its bid, Oasis Star said it is supportive of the board of directors and management team of TIA and their current strategy and has no current intention to make any substantive changes to the operations of TIA.
At the same time, Oasis Star revealed that if the takeover bid is successful, it will sell a 50% stake in itself to Xiangyu, a wholly-owned subsidiary of Chinese real estate and investment firm, Xiamen Xiangyu Group Corporation (Xiangyu Group).
Xiangyu Group has operations in Shanghai, Jiangsu, Fujian, Chongqing, Hunan and other areas in China.
The deal will give the Forbes Global 2000-listed Xiangyu Group, a Chinese government owned entity, a significant foothold into Australia’s real estate market.
Oasia Star and Xiangyu Group will be able to significantly expand on TIA’s current modest development pipeline of five projects, including:
- Bridgeview, a 23 townhouse development a 1.5km from Sydney CBD
- A 12,620 sqm site at Enfield in inner western Sydney
- Oceanique in Perth’s south
- Point Grey, a 275 hectare masterplanned community of 3,000 homes and 300 berth marina in the Peel region
- SeaSpray, a 14 hectare, 247 residential lots development at Point Cook in Melbourne’s south west
TIA yesterday announced that it has established an independent board committee comprised of independent directors of TIA, being Marcus Seow and Cerena Fu to review and assess the indicative proposal.
The board has appointed Piper Alderman as legal advisers.
Australian Property Journal
