Stockland has struck the killer blow in the latest round of rationalisations in the beleaguered real estate trust sector with a raid on rival GPT’s register, paying up to $541 million for a strategic 12.7 per cent stake.
In a share swap and cash deal with fund manager Perennial Investment Partners, Stockland has snared the interest for about one-third of the amount it was willing to pay in late 2004 in its unsuccessful tilt at GPT.
At that time Stockland offered the equivalent of about $3.70 for each GPT security.
GPT yesterday closed up 14c, or 13.3 per cent, at $1.19, giving it a market capitalisation of $4.7 billion, while Stockland fell 1.8 per cent to $4.29, taking its overall value to $6.59 billion.
Analysts said yesterday that despite having raised $300 million in a rights issue in early October, Stockland could face financing hurdles if it decided to make a full cash takeover.
Analysts said Stockland could quarantine the business into a separate unlisted trust if no buyer emerged.
Under the deal Stockland paid Perennial $224.3 million for 195 million GPT securities and issued 51 million of its own shares to Perennial for another 195 million GPT securities.
It entered into an equity swap arrangement with Deutsche Bank, which also acted as an adviser to GPT on its recent $1.2 billion capital raising, involving a further 117.3 million GPT securities for a cost of $97 million at an average price of $1.07 for GPT.
Stockland now joins the GPT register with the Singapore Government Investment Corp (GIC).
