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07-08-2014, 10:31 PM
Australand falls to Frasers
THE AUSTRALIAN AUGUST 08, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
Share price chart for Australand
Share price chart for Australand Source: TheAustralian
DEVELOPER and investor Australand looks set to fall into Singaporean hands again, with Frasers Centrepoint passing a key threshold in its $2.6 billion takeover, securing more than 50.1 per cent of shares.
The last-minute support saw Frasers’s $4.48-a-share cash offer turn unconditional and gives shareholders another two weeks to accept. Frasers confirmed yesterday evening it had secured 56.8 per cent of Australand.
Its success puts pressure on Stockland, which owns 19.9 per cent of the company, to accept the offer.
However, sources said Stockland could hold out and seek a side deal over certain assets with Frasers to secure support for the offer.
Frasers chief executive Lim Ee Seng indicated his group’s desire to control all the elements of Australand’s business, saying the deal would deliver the company ownership of an attractive commercial and industrial portfolio with development capabilities, as well as boosting it’s local residential development capabilities.
“Australia is a core market for FCL, and we look forward to exciting times ahead for our Australia business,” he said.
Frasers plans to delist Australand if it reaches its next hurdle of obtaining 90 per cent of the company’s stock. Last night, Frasers again pushed for the holdout shareholders to accept.
Its appeal for acceptances came after the bid went down to the wire yesterday.
The company, controlled by Thailand’s Chang Beer baron Charoen Sirivadhanabhakdi, was forced to wait until late afternoon before knowing whether it had achieved the crucial 50.1 per cent condition of the offer.
Among the sellers were a cavalcade of hedge funds that had taken up positions on Australand’s register, including GLG Partners, P-Squared and Och-Ziff.
But Pacific Alliance Group, which was rumoured to have been stalking Australand earlier in the year, is understood to have baulked at accepting the offer.
The hedge funds are understood to have used the institutional acceptance facility that meant the shares only transferred once the key milestone of 50.1 per cent had been reached.
It is thought some tinkering by Frasers with the fine print of its acceptances policy — to allow the inclusion of shares sold into the institutional acceptance facility in the overall count — will be instrumental in getting the deal across the line.
CLSA analyst John Kim said the deal showed that Australian property was in very high demand from both local and offshore groups.
Australand was advised by Macquarie and Fort Street while Deutsche Bank and Standard Chartered advised Frasers.
Frasers’ take out of Australand marks the second time in less than a year the company has counted a major Singaporean property company as its largest shareholder.
Earlier this year, Singapore’s CapitaLand sold its 40 per cent stake, sparking a takeover tilt by Stockland that was initially rebuffed by Australand.
Stockland later returned with a higher offer, only to be trumped by a higher, all-cash bid by Frasers.
THE AUSTRALIAN AUGUST 08, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
Share price chart for Australand
Share price chart for Australand Source: TheAustralian
DEVELOPER and investor Australand looks set to fall into Singaporean hands again, with Frasers Centrepoint passing a key threshold in its $2.6 billion takeover, securing more than 50.1 per cent of shares.
The last-minute support saw Frasers’s $4.48-a-share cash offer turn unconditional and gives shareholders another two weeks to accept. Frasers confirmed yesterday evening it had secured 56.8 per cent of Australand.
Its success puts pressure on Stockland, which owns 19.9 per cent of the company, to accept the offer.
However, sources said Stockland could hold out and seek a side deal over certain assets with Frasers to secure support for the offer.
Frasers chief executive Lim Ee Seng indicated his group’s desire to control all the elements of Australand’s business, saying the deal would deliver the company ownership of an attractive commercial and industrial portfolio with development capabilities, as well as boosting it’s local residential development capabilities.
“Australia is a core market for FCL, and we look forward to exciting times ahead for our Australia business,” he said.
Frasers plans to delist Australand if it reaches its next hurdle of obtaining 90 per cent of the company’s stock. Last night, Frasers again pushed for the holdout shareholders to accept.
Its appeal for acceptances came after the bid went down to the wire yesterday.
The company, controlled by Thailand’s Chang Beer baron Charoen Sirivadhanabhakdi, was forced to wait until late afternoon before knowing whether it had achieved the crucial 50.1 per cent condition of the offer.
Among the sellers were a cavalcade of hedge funds that had taken up positions on Australand’s register, including GLG Partners, P-Squared and Och-Ziff.
But Pacific Alliance Group, which was rumoured to have been stalking Australand earlier in the year, is understood to have baulked at accepting the offer.
The hedge funds are understood to have used the institutional acceptance facility that meant the shares only transferred once the key milestone of 50.1 per cent had been reached.
It is thought some tinkering by Frasers with the fine print of its acceptances policy — to allow the inclusion of shares sold into the institutional acceptance facility in the overall count — will be instrumental in getting the deal across the line.
CLSA analyst John Kim said the deal showed that Australian property was in very high demand from both local and offshore groups.
Australand was advised by Macquarie and Fort Street while Deutsche Bank and Standard Chartered advised Frasers.
Frasers’ take out of Australand marks the second time in less than a year the company has counted a major Singaporean property company as its largest shareholder.
Earlier this year, Singapore’s CapitaLand sold its 40 per cent stake, sparking a takeover tilt by Stockland that was initially rebuffed by Australand.
Stockland later returned with a higher offer, only to be trumped by a higher, all-cash bid by Frasers.