FOUR years after abandoning its takeover bid GPT, predator Stockland is showing renewed interest by grabbing a big slice of the group.
Stockland is set to become the largest shareholder in GPT after buying a 12.7% stake at $1.07. The only other party that could trump Stockland is the Singapore Government’s GIC Real Estate which could control 12%-18% of GPT.
In total Stockland has an interest in 507.3 million GPT securities. But the deal is not straight forward, Stockland’s has bought the stake in GPT from Perennial Investments via $224.3 million and the issue of 51 million Stockland securities in exchange for 195 million GPT securities.
The effective issue price will be the closing price of Stockland securities on November 11 of $4.37 for total consideration of $222.9 million.
Stockland further increased its stake through a $97 million equity swap facility with an investment bank for 117.3 million GPT securities. This represents an off balance sheet exposure.
The swap for Stockland’s stake represents a 2% premium to GPT’s closing price on November 11 of $1.05 – a big discount to GPT’s 12 month peak price of $4.87.
Compared to four years ago on November 09 2004, Stockland had made a $3.57 per unit bid for GPT which was rejected by the group along with Lend Lease’s $3.72 offer in favour of a joint venture with Babcock & Brown and Westfield.
Analysts yesterday said this is a skilful move by Stockland, if it ever decides to takeover GPT. In the past month, Stockland has bought stakes in FKP Property Group and Aevum.
Stockland’s managing director Matthew Quinn said GPT has a portfolio of extremely high quality assets, including a number of iconic Australian shopping centres and office buildings.
“The acquisition price of the GPT securities represents good value for our security holders and we are pleased that Perennial has decided to increase its investment in Stockland through this transaction,” he added.
The acquisition of these GPT securities will not have a material effect on Stockland’s gearing ratio. The transaction will have a marginally dilutive impact on FY09 EPS based on GPT’s estimated distribution.
GPT shares soared yesterday trading at $1.19 up 14 cents but Stockland close 8 cents lower at $4.29.
Australian Property Journal
