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- Dexus (DXS) has signed a binding agreement to acquire APN Property Group (APD) for a cash consideration of 91.5 cents per share
- The total consideration payable by Dexus represents an equity value of $320 million and an enterprise value of $308 million
- In absence of a superior proposal and subject to an independent evaluation, the APN board recommends that shareholders vote in favour of the takeover
- APN Chairman Chris Aylward said the proposal represents “compelling value to APN securityholders”
- The APN shareholder meeting is expected to be held in July 2021 with Dexus expecting completion of the transaction in FY22
- On the market today, Dexus is unchanged trading at $10.25 per share while APN is also unchanged at 61 cents per share
Dexus (DXS) has signed a binding agreement to acquire APN Property Group (APD) for a cash consideration of 91.5 cents per share.
Under a binding Scheme Implementation Deed, Dexus has proposed to buy all the stapled securities in APN. At the aforementioned per-share price, the deal represents an equity value of $320 million and an enterprise value of $308 million.
If successful, the buyout will bring Dexus’ management portfolio up to $23.9 billion, which includes retail wholesale capital, listed REITs, real estate securities and a direct unlisted property company.
In absence of a superior proposal and subject to an independent evaluation by KPMG Corporate Finance, the APN board has recommended shareholders vote in favour of the takeover.
Each director intends to vote in favour, including APN’s Chairman Chris Aylward, who represents 33 per cent of APN’s issued securities.
Aylward has also granted a call option to Dexus over APN securities of 19.9 per cent of the issued capital.
APN is a specialist real estate investment manager who looks after $2.9 billion of real estate investments.
Domestic and international property securities, direct property, and listed commercial real estate funds are among the 11 funds managed by APN.
APN runs the APN AREIT Fund strategy, worth $1.1 billion, as well as the APN Industria REIT — an ASX-listed industrial and office property trust with $950 million in assets — and the APN Convenience Retail REIT — a $540 million portfolio of non-discretionary retail properties.
“This transaction supports our strategic initiative of expanding and diversifying our funds management business, increasing our suite of funds on offer outside of wholesale funds into listed REITs, real estate securities funds and unlisted direct property funds,” Dexus CEO Darren Steinberg said.
“The transaction also expands our investor network to include retail and high net worth capital,” he added.
Aylward said the proposal represents “compelling value to APN securityholders”.
“We believe the combination of the two platforms will provide incremental growth opportunities for the APN business as well as its underlying funds, investors and team members,” he said.
Recently the merger of a property fund of Dexus with a real estate fund run by AMP asset management arm was approved by unitholders.
The APN shareholder meeting is expected to be held in July 2021 with Dexus expecting completion of the transaction in FY22.
On the market today, Dexus is unchanged trading at $10.25 per share, while APN is also unchanged at 61 cents per share at 10:41 am AEST.
