Centuria Capital is proposing a NZ$180m (€106.8m) takeover of New Zealand real estate fund manager Augusta Capital.
The Sydney-based company intends to offer Augusta shareholders NZ$2 per share in cash or shares in Centuria, a 19.8% premium on Augusta shares’ last closing price of NZ$1.67.
Centuria said that it had secured pre-bid arrangements from two key shareholders and their associated companies, collectively amounting to a 36.2% stake in the listed New Zealand company.
Augusta’s founders and significant shareholders, Mark Francis (17.2%) and Bryce Barnett (6.1%) have both entered into pre-bid lock-up agreements to accept Centuria’s offer.
Other Augusta shareholders holding a further 12.9% of Augusta shares had entered lock-up agreements agreeing to accept the offer.
The bidder said that, as a result of the lock-up agreements, other shareholders were expected to consider doing likewise.
Augusta is one of New Zealand’s larger listed real estate funds management businesses, managing NZ$2.0bn in assets across a range of listed, unlisted and private funds.
A takeover will increase Centuria’s total assets under management by 26% to A$9.2bn (€5.6bn).
Centuria would raise A$60m in a placement to part fund the transaction, which would be paid for from existing cash reserves and scrip.