Australia: Mirvac bids for real estate trust.Byline: shiv03 Developer Mirvac Group Mirvac Group (ASX: MGR) is a diversified property investment and management group in Australia with more than $24 billion of assets under control across the investment, development, and hotel and funds management spectrum. has made an offer for one of its associated funds, Mirvac Real Estate Investment Trust, offering a deal amounting to 54 cents per trust unit. Mirvac said on Monday it was offering 50 cents per trust unit up to 20,000 units, plus one security of the merged entity for every three trust units above that level. Mirvac Real Estate Investment Trust securities closed at 58 cents on Friday, rising two cents on the day. Mirvac securities fell three cents on Friday, to $1.66. Mirvac says its offer values the trust units at 54 cents, which it says is a 56 per cent premium on the one month volume weighted average price (VWAP VWAP The volume-weighted average price. )of the units at the time the bidder announced in August that it was having talks with the trust. The offer is proposed to be implemented by way of a trust scheme and requires the trust's unitholder approval. Mirvac said a subcommittee sub·com·mit·tee n. A subordinate committee composed of members appointed from a main committee. subcommittee Noun comprised solely of independent directors of the trust had recommended that unitholders vote in favour of the scheme in the absence of a superior proposal. Mirvac, which currently owns 24.6 per cent of the trust, believes the combination of the two portfolios and operations will create a stronger and more diversified property investment portfolio. "The proposed transaction is expected to deliver 2.9 per cent earnings accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the to Mirvac Property Trust in the 2010 financial year and expands Mirvac's ownership of Australian income producing assets by an additional $1.0 billion," Mirvac said in a statement. The developer will fund the transaction entirely from a combination of existing cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. and the issue of new ordinary stapled securities A stapled security is security that is contractually bound to one or more other securities to form a single saleable unit. For example a unit of shares in a company can be bound to unit of a trust and they must be purchased and sold together. . "We believe that the merger provides MRZ MRZ Machine Readable Zone MRZ Mainzer Rhein-Zeitung (Mainz, Germany newspaper) MRZ Mutant Renegade Zine Unitholders the option to diversify their property exposure by investing in Mirvac - a leading Australian integrated real estate group underpinned by one of the lowest geared balance sheets in the A-REIT sector," Mirvac managing director Nicholas Collishaw said. Mirvac Group is being advised by J.P. Morgan and Macquarie Capital Advisers on the transaction. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
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