This article is from the Australian Property Journal archive
THE Australian Competition and Consumer Commission will review Prime Trust's proposed takeover of Babcock & Brown Communities Group.
PTN’s managing director Philip Powell yesterday said the trust has received a letter from the ACCC, the watchdog telling the trust that it intends to monitor the 40% proportional scrip bid for Babcock & Brown Communities Group, announced last Thursday.
“Prime Trust sees this as a first step to a possible merger of the two entities which would create Australia’s largest senior living class owner and operator,” Powell said.
The ACCC intends to undertake a public informal review in accordance with section 50 of the Trade Practices Act 1974.
The scrip offer means PTN shares price are supposed to be proportional to BBC’s but the trust’s offer is a big discount.
Yesterday PTN shares closed 1 cent lower at 47 cents valuing the trusts at $269 million compared to BBC which rose 3.5 cents to close at 52.5 cents valuing the company at $342 million.
Last Friday, PTN bought 0.434% stake totalling 2.83 million shares in BBC. The exercise cost around $969,048.
BBC has told its shareholders to take “No Action” in response to the unsolicited offer.
Australian Property Journal
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http://www.propertyreview.com.au/news/1/ARTICLE/6553/2008-09-05.html