Australand has rebuffed the unsolicited, non-binding proposal from GPT to acquire much of its core business.
Its taken five days for the Australand board to make its response to what effectively was the cherry-picking proposal of GPT for Australand’s investment property portfolio and its commercial and industrial business.
The offer involved Australand retaining the residential business.
The Australand board has today declared the GPT proposal as "not providing a compelling value proposition."
It was not in the best interests of Australand’s securityholders with the board suggesting the offer "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."
The board does not intend to engage with GPT in relation to the proposal which they view as "incomplete, highly conditional and subject to a number of factors including undertaking due diligence, exclusivity and market break fees."
The proposal involved GPT acquiring the assets at a premium of $140 million to the 30 June 2012 book value.