PriceSensitive

Irongate (ASX:IAP) rejects third takeover bid from 360 Capital (ASX:TOT)

Market News, Real Estate
ASX:TGP      MCAP $135.9M
12 January 2022 14:51 (AEDT)
Irongate Group (ASX:IAP) - CEO, Graeme Gaetz

Source: IAP Group

Property group Irongate (IAP) has rejected yet another takeover bid from fellow ASX-listed 360 Capital (TOT) — its third unsolicited acquisition offer in the last three months.

360 Capital is already IAP’s largest shareholder, owning some 123.3 million IAP shares for a 19.11 per cent interest in the business. Under its takeover proposal, 360 Capital was offering to buy all shares in IAP it did not already own for $1.72 a pop.

Nevertheless, while this price tag represents a 7.2 per cent increase on the initial 360 Capital offer price from October, IAP maintained that 360 Capital’s offers continue to undervalue the business and, as such, do not represent a “compelling proposition” for stakeholders.

“The IAP board is committed to maximising value for all securityholders and ensuring the interests of all IAP securityholders are protected,” IAP said in an announcement to the ASX.

“The IAP board will appropriately consider a proposal that is consistent with these objectives.”

360 Capital has so far made no comment on IAP’s proposal rejection.

Third time unlucky

360 Capital first lobbed a highly conditional, unsolicited bid for full control of IAP in October, offering $1.6047 per share for all IAP shares it did not already own.

This offer effectively represented a headline price of $1.65 per share minus a 4.53-cent dividend IAP announced it would issue to shareholders for the six months to the end of September 2021.

A month later — after IAP rejected this first bid — 360 Capital upped the ante and offered $1.6547 per share for full control of IAP. Once again, the offer represented a headline price of $1.70 per share minus the planned IAP dividend.

IAP rejected this second offer, too, prompting the third takeover attempt by 360 Capital — the flat $1.72-per-share offer. All other conditions of the offer remained unchanged.

Shares in 360 Capital fell almost 2 per cent in morning trade before recouping their losses to trade grey at 90 cents each as of 1:53 pm AEDT.

At the same time, IAP shares were down 0.87 per cent to $1.70 per share.

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