Australia’s Irongate Group said it has received a A$1.29 billion takeover bid from a partnership managed by property investor Charter Hall Group, topping a rejected offer by 360 Capital.
The partnership, comprising Dutch pension fund PGGM and Charter Hall, made a bid of A$1.90 per share for the real-estate investor, representing a premium of 21% to the stock’s closing price on Jan. 28.
Shares of Irongate soared 19.1% to a record high of A$1.87.
The latest offer comes in higher than the revised bid of A$1.72 per share from 360 Capital, an Australian investment and funds management group, but was rejected for not “adequately reflecting the underlying value” of the company.
The Charter Hall proposal includes a memorandum of understanding with 360 Capital, and it contains a call option over 360 Capital’s 19.9% shareholding in Irongate.
360 Capital did not immediately respond to a Reuters request for comment.
The Charter Hall-PGGM partnership expects to fund the proposed transaction from existing financial resources and new debt facilities.
Source: Reuters.com