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Highlights
- AUIREL has formed a board committee to investigate Aliro's proposal to purchase the Australian Unity Office Fund (AOF).
- AOF informed that it received an AU$403 million offer last week from Fund manager Aliro.
The independent directors of Australian Unity Investment Real Estate Limited (AUIREL) have formed a board committee to investigate Aliro's non-binding indicative proposal to purchase the Australian Unity Office Fund (ASX:AOF) for AU$2.45 cash per unit.
Last week (on 30 May 2022), AOF informed that it has received an AU$403 million offer from Fund manager Aliro.
According to AOF, the offer came from the Sydney-based manager on behalf of the Aliro Group Office Value Fund (AGOVF). The deal is subject to various regulatory approvals.
Meanwhile, shares of AOF were trading 0.41% higher at AU$2.43 each on ASX today (03 June 2022) at the time of writing this article.
Also Read: Why are Australian Unity Office Fund (ASX:AOF) shares flying high?
What is the proposal value?
The offer price represents an 11.9% premium to AOF's closing price of AU$2.19 on the trading day before the disclosure of receipt of the proposal and a 9.0% premium to AOF's volume-weighted average price of AU$2.25 since the release of AOF's market update on 4 May 2022 disclosing the updated valuation of 2-10 Valentine Avenue, Parramatta.
Additionally, as AUIREL stated in its 30 May announcement, the following distributions to AOF unitholders would be permitted without any reduction in the offer price: up to 3.80 cents per AOF unit for the period ending 30 June 2022; up to 1.50 cents per AOF unit for the period ending 30 September 2022; and for each month after 30 September 2022. Any other payouts announced or paid would be deducted from the offer price.
Aliro has the backing of the listed fund's single largest unitholder, Hume Partners, according to AUIREL. In the absence of a better offer, Hume Partners, which owns 19.97% of AOF's units, had given Aliro a "voting intention declaration" to vote in favour of the offer.
Source: © Paura | Megapixl.com
Other offers received by AOF
AOF unitholders have previously rejected Starwood Capital's buyout attempts, including the last offer of AU$485 million in January 2020.
Three years ago, Charter Hall teamed up with Abacus, another Australian property fund manager, to purchase the Australian Unity-managed fund for AU$495 million. Unitholders rejected that offer as well.
About Aliro
Aliro is an investment, real estate development, and funds management firm. It collaborates with a wide range of wholesale capital partners to create, grow, and actively manage sector-specific property funds, resulting in long-term value for its customers and partners.
Daniel Wise and David Southon started Aliro together. Southon and David Harrison co-founded Charter Hall. However, Southon departed the firm in 2017 to start Aliro.
Also Read: GMG, LLC, DXS: How are these real estate stocks faring today on ASX?
