- Just one month after withdrawing its offer, Centuria Capital (CNI) has agreed to acquire up to 24.99 per cent of Augusta Capital
- Augusta Capital is a New Zealand-based real estate funds manager who has sought a NZ$45 million equity raise to strengthen its position
- This raise reignited Centuria’s interest citing the opportunity as a unique way to develop a strong presence in New Zealand
- Centuria will take out a maximum of A$22.3 million from its cash reserves
- And will be left with roughly A$120 million
- Centuria ended the day 4.84 per cent in the green, with shares closing at $1.63 each
Centuria Capital (CNI) has agreed to acquire an initial 19 per cent interest in Augusta Capital, New Zealand’s leading listed real estate funds manager.
This announcement comes roughly one month after Centuria confirmed it terminated its bid on Augusta, an agreement which was originally announced in late January.
The reigniting interest in Augusta conveniently comes after the New Zealand-based firm announced a NZ$45 million (approx. A$42.3 million) equity raise to strengthen its balance sheet and provide capital for growth opportunities.
“We believe Centuria’s investment in Augusta represents a unique opportunity to develop a strong presence in the New Zealand funds management arena,” Centuria Joint CEO John McBain said.
The raise consists of a $12.4 million placement and a $32.6 million entitlement offer. Following the placement and institutional component of the entitlement offer, Centuria will acquire an initial 19 per cent interest in Augusta at 55 cents per share.
Centuria will also subscribe for 100 per cent of its rights and partially sub-underwrite the offer under an agreement with Forsyth Barr Group and Jarden Partners.
The sub-underwriting will provide Centuria the opportunity to increase its holding to 24.99 per cent.
“Augusta has impressive growth credentials and we believe that as COVID-19 conditions unwind we need to look to the future and believe Australasian markets will provide excellent opportunities for experienced and nimble managers such as Centuria and Augusta,” Centuria Joint CEO Jason Huljich said.
Centuria will take out a maximum of NZ$23.6 million (roughly A$22.3 million) from its cash reserves. After this transaction, it will have roughly A$120 million.
Centuria ended the day 4.84 per cent in the green, with shares closing at $1.63 each.