CapitaLand's Australand rejects unsolicited acquisition proposal from GPT Group

Proposal dismissed for lack of "compelling value proposition".

Australand, a subsidiary of CapitaLand, announced on 10 December 2012 that it received an unsolicited, indicative, non-binding proposal from The GPT Group to acquire Australand’s Investment Property Portfolio and its Commercial and Industrial business. The [roposal involved The GPT Group acquiring the said assets at a premium of $140 million to the 30 June 2012 book value, and involved Australand Holdings Limited retaining the residential business and remaining a listed entity.

"The Board of Australand, together with its advisers, has carefully considered the [roposal and has determined that the proposal does not provide a compelling value proposition and is not in the best interests of Australand’s securityholders," Australand said.

"The Board has formed the view that the Proposal does not provide a sufficient premium nor compensate Australand securityholders for the transaction costs that would be incurred by Australand, structural inefficiencies and risks involved with implementing the Proposal including the uncertainty as to the trading value of the residual residential business as a stand alone listed company," it added.

"Whilst the Board remains committed to maximising securityholder value, it does not intend to engage with The GPT Group in relation to the Proposal," it concluded.