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Australand gets new $2.6b takeover offer

A property developer from Singapore has trumped Stockland’s $2.5 billion takeover bid for Australand. Sources: Timberbiz, News.com.au, Sydney Morning Herald

Frasers Centrepoint has offered $2.59 billion in cash for Australand, beating Stockland’s share-swap deal lodged last week.

The offer is to acquire 100 per cent of Australand through an off-market takeover offer for cash consideration of $4.48 per Australand share, but it moves to an equivalent $4.60, as it includes the Australand interim distribution of 12.75 cents.

That equates to a $2.59 billion cash offer, trumping Stockland’s share-swap deal.

Australand, the owner of $2.4 billion in residential and commercial developments, has granted Frasers four weeks to exclusively complete due diligence, at the expense of Stockland.

The target’s board said it intends to recommend the new offer to its investors if no superior offer eventuates.

“The board concluded that the conditional proposal would deliver a compelling value outcome for Australand securityholders and is superior to the final and conditional proposal received from Stockland,” chairman Paul Isherwood said.

Singapore-based analysts at Goldman Sachs said Frasers used to be controlled by
Temasek/OCBC family but now controlled by Thai Bev.

”They are well funded and seem to have a decent amount of cash they are trying to put to work outside of Thailand. They have been very aggressive in bidding for some mixed use commercial/residential in Singapore recently,” the analysts said.