ASX-listed specialist investment manager Centuria Capital is buying Perth-based property group Primewest in a A$600m (€388m) deal to create a A$15.5bn funds management entity.
Centuria is proposing to pay A$1.51 for each Primewest security, made up of 20c in cash and 0.473 Centuria securities per Primewest security.
The Primewest board, whose directors represent 53% of Primewest securities, have confirmed they intend to accept the merger.
Centuria joint CEO, John McBain, said the proposal represented an “exciting” opportunity to combine two highly complementary real estate platforms that shared similar philosophies and strong track records.
“We believe the merged group will be strategically poised for further growth in the healthcare and agricultural sectors in particular, as well as the traditional real estate sectors,” said Jaon Huljich, Centuria joint CEO.
Centuria Chairman, Garry Charny, said the proposed merger was consistent with Centuria’s “dual strategy of asset acquisitions and corporate M&A”.
The enlarged group would have a market capitalisation of around A$2.2bn, making it a likely candidate for inclusion in the S&P/ASX 200 index.
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