Directors of PropertyLink Group recommended its shareholders to “accept” the takeover offer proposed by private company ESR Real Estate (Australia), in the absence of a Superior Offer.
On 12 November 2018, PropertyLink Group (ASX: PLG) entered into a binding Bid Implementation agreement with private real estate company ESR in connection with ESR’s off-market takeover bid to acquire all PropertyLink securities at a cash consideration of $1.20 per security.
Today, 20 November 2018, PropertyLink Group disclosed the target statement for the same stating that since no superior offer has emerged to date and expert’s approval has been received, the Board of Directors of PropertyLink Group unanimously recommend the shareholders to “accept” the offer.
The Independent Expert has assessed Propertylink’s equity value to be in the range of $1.14 – $1.19 per Propertylink security and since the offer price of $1.20 is above the Independent Expert’s assessed value, the Independent Expert, KPMG Corporate Finance has concluded that the offer is fair in the absence of a superior proposal.
PropertyLink Group stated that offer price of $1.20 cash per share represents substantial premium to the trading price of PropertyLink securities prior to the announcement of the Initial Offer. This translates 14.3% premium to the closing price of Propertylink Securities on 20 September 2018 and 15.4% premium to Propertylink’s stated 30 June 2018 NTA of $1.04 per security.
The acquisition offer tabled by ESR Real Estate has defeated the bids by rival group as the offer price of $1.20 reflects a 26.4% premium on $0.95 offer previously proposed by rival Centuria Capital Group (CNI) and Centuria Industrial REIT (CIP) on 22 September 2017.
With the release of target statement, the shareholders of the company have been asked to fully accept the offer; or partially accept the offer and sell some of their stakes in PropertyLink; or do nothing and reject the offer. However, the company warned its shareholders that the Propertylink share price may fall if the offer lapses and no superior proposal emerges. The company further stated that if ESR acquires a controlling interest and you have not accepted the Offer, there are a number of risks that would be associated with being a minority Propertylink Securityholder
The offer is opening on 21 November 2018 and is slated to close on 31 January 2019.
In the closing statement, the company said that the decision as to whether or not to accept the Offer depends on the circumstances of each individual Propertylink Securityholder, including risk profile, portfolio strategy, tax position, financial circumstances and investment time horizon. Moreover, the completion of offer remains subject to satisfaction of several conditions.
PropertyLink Group’s shares traded at higher level in early trade but has concluded the session flat as on 20 November 2018. Its last traded share price is $1.180 with PE of 5.730 x and market capitalization of $711.28 million. Over the past one year, the stock has witnessed a positive performance change of 17.41%.
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