Centuria announces Augusta Capital takeover offer to be unconditional

 

• Acceptance to takeover represent 65.86% of Augusta’s shares
• Takeover provide shareholders with NZ$0.22 in cash and 0.392 Centuria stapled securities for every share of Augusta
• Centuria’s assets under management will increase by 24% to A$8.9 billion following deal completion

Centuria Capital Group, through its fully-owned subsidiary, Centuria NZ, has reportedly announced that the $169 million takeover bid for Augusta Capital has gone unconditional after receiving the necessary share acceptances.

According to sources familiar with the knowledge of the matter, the deal has received acceptance on 65.86 % of Augusta’s shares, exceeding the 63.5% required to initiate the takeover. This is the second bid Centuria has made for Augusta this year.

Previously, Centuria offered USD 180 million which was withdrawn due to the ongoing COVID-19 pandemic. After the completion of the deal, Centuria’s assets under management will increase by 24% to A$8.9b. Moreover, the takeover will provide shareholders with NZ$0.22 in cash and 0.392 Centuria stapled securities for each share of Augusta.

In the last month, Centuria surged the cash component of the offer from 20c to 22c per share. However, the company has kept the scrip component of the offer steady.

Speaking on which, John McBain, Joint chief executive of Centuria said that the company is encouraged by the substantial response and it is looking forward to the complete the offer and expand Centuria's funds management platform into the New Zealand market.

Augusta is a significant player in this market with an extremely effective team; he said adding that the company anticipates New Zealand to be a significant growth driver within the Centuria platform.

Mr. McBain John further added that he is enthusiastic for Augusta shareholders to benefit from Centuria’s leading position in the Australian market.

The new deal values Augusta at USD 169.5m compared with Centuria’s previous offer valuing it at USD 180 million.

For the record, merely a couple of months back, Centuria Industrial REIT had completed a fully underwritten institutional placement raising USD 130 million. The New Units had been issued at USD 2.62 per New Unit, and the capital from the equity raising were expected to be used to strengthen CIP’s balance sheet in addition to providing funding to execute CIP’s strategy of taking over quality industrial assets.

Source Credit - https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12346693