Propertylink Group (ASX: PLG) today provided an update on Acceptance Facility in relation to the acceptance of the ESR Australia’s takeover offer by the participants to acquire fully paid ordinary stapled securities in Propertylink Group.
As of 12 February 2019, ESR Australia announced that the aggregate of the Propertylink Securities in which ESR Australia has a relevant interest or in respect of which valid Acceptance or Acceptance Instructions received held subject to the Acceptance Facility, has reached 38.78% as a percentage of the total number of PLG Securities on the issue.
But this percentage of ESR Australia’s Aggregate Interest in Propertylink Securities has to reach the threshold of 50.1% latest by 19 February 2019 for ESR Australia to waive any takeover conditions that have not been fulfilled. ESR Australia’s intention to waive the condition also depends on the satisfaction that no condition has been breached.
The entire update revolves around the takeover over proposed by ESR Real Estate (Australia) Pty Ltd to acquire all of the stapled securities in Propertylink Group at an offer price of $1.20 in cash per PLG security.
In December 2018, Propertylink’s Directors unanimously advised that securityholders accept the ESR Australia cash offer in the absence of a superior proposal. And each of the directors on the Propertylink Board has already accepted the Offer. The closing date of the offer period has been extended from 31 January 2019 to 28 February 2019.
Further, the offer has even been approved by Independent Expert who is of the view that the Offer Price of $1.20 (before being reduced by the Interim Distribution) is above the Independent Expert’s assessed equity value for Propertylink which is in the range of $1.14 to $1.19 per Propertylink Security on a fully diluted basis.
Propertylink announced on 20 December 2018 an interim distribution for the six months to 31 December 2018 of 3.6 cents with the payment date of 31 January 2019. So, as stated in bidder’s statement, ESR adjusted the offer price from the amount of any distributions paid by Propertylink.
Accordingly, the bidder stated that each Propertylink Securityholder who accepts the Offer, regardless of when they accept, will receive $1.164 per Propertylink Security, being $1.20 reduced by the amount of the 3.6 cents Interim Distribution.
ESR Australia and its associates had a relevant interest in 35.49% of the Propertylink Securities as at 12 February 2019. ESR Australia is a subsidiary of ESR Cayman Limited, a logistics real estate developer.
Propertylink’s shares are trading at $1.162 on 13 February 2019 (3:50 PM AEST). Over the past 12 months, the stock has surged up by 24.73% including a positive price momentum of 0.43% over the last one month.
Moreover, Price to Earnings multiple of Propertylink Group’s stock stands at 5.630 x with the company’s market capitalization of $699.23 million and 602.78 million outstanding shares as at 13 February 2019.
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