ARA plans partial takeover of Cromwell Property

An offer will be made to acquire 29 Cromwell securities for every 100 owned at a cash price of $0.90 per security.

ARA BidCo, a wholly-owned entity of ARA Asset Management, will make an offer to Cromwell Property to acquire a portion of their holdings, a press release revealed. The offer price will be at a premium to the existing market price.

This move was claimed to have originated from the significant deterioration in Cromwell’s operating EPS, increased debt, and a poor international track record. “ARA has been left with no choice but to pursue this course to try and restore value for the benefit of ARA and all security holders in Cromwell. We seek change based on our strong belief that the existing Cromwell strategy is failing and exposing our investment to unacceptable risks. This is magnified by poor cost control by management, at times inexcusable largesse, and weak corporate governance,” said John Lim, CEO of ARA group.

Moelis Australia and Credit Suisse Australia are acting as financial advisers to ARA Group whilst Arnold Bloch Leibler is the legal adviser, the press release added.