Australian property firm Centuria is lining up to make a full takeover offer for Auckland based developer Augusta Capital.
File photo. Photo: 123rf
It has renewed its interest with a planned offer of a mix of cash and shares worth $130 million.
Centuria made an initial takeover offer of $AU2 per share in January, which it withdrew in late March as the Covid-19 pandemic hit.
It then emerged as a 23 percent shareholder when Augusta raised $45m through a share issue in May to strengthen its finances in the face of a likely hefty loss.
Centuria's joint chief executive John McBain said they remained attracted to Augusta and did not want uncertainty about business on both sides of the Tasman to delay things any longer.
"Both Augusta Capital and Centuria are extremely compatible groups, which makes an acquisition of the remaining interest in Augusta consistent with our growth strategy."
Centuria is proposing to pay 20 cents in cash and 0.39 of a one of its stapled securities, all up worth $NZ1.
That is a 46 percent premium to Augusta's closing price on Friday.
McBain said Centuria was taking a long term view, and accepted that some developments, such as hotels, would not occur in the near term.
"With our capital backing and the Augusta team's expertise, we'll be well-placed to take advantage of opportunities as Covid-19 unwinds."
Augusta owns office, commercial, retail, and industrial properties, as well as property investment funds, with a total value of $1.83 billion, but has deferred a planned hotel development in Queenstown.
The offer has the backing of some of Augusta's big shareholders, which together with its own stake gives Centuria a 43 percent interest.
Augusta's board said the planned bid was not yet official and advised shareholders not to sell without advice.
Centuria has set a 90 percent acceptance as a condition, but McBain would not be drawn on whether it would be content with a smaller stake.
