CMIL backs sweetened Dexus bid

The Commonwealth Managed Investments Ltd board is recommending a sweetened takeover bid from Dexus Property Group (DXS) and the Canada Pension Plan Investment Board for the Commonwealth Property Office Fund (CPA).

In a statement to the Australian Securities Exchange, CMIL said the revised offer is valued at approximately $1.21 per CPA unit, comprised of cash consideration estimated at 72.7 cents plus 0.4516 Dexus stapled securities.

The fresh offer values the company's stock at $2.42 billion.

CMIL's recommendation is subject to approval from an independent expert.

Dexus and CPA were placed in trading halt on Friday ahead of an announcement about the increased offer, after CMIL last month refused a bid valued at $1.15 per unit.