DataRoom AM: Singapore sling

Stockland weighs its options following Frasers Centrepoint’s bid for Australand, while Monash IVF gets ready to hit the ASX boards.

Stockland’s push to claim Australand Property Group is at a crossroads, with the entrance of Singapore’s Frasers Centrepoint into the race leaving investors confident it may be game over for the local firm.

Elsewhere, Monash IVF receives strong backing for its float, Woolworths pushes forward with a divestment of a selection of pubs and Noni B's stock jumps on news of takeover offers.

The race for Australand Property Group became instantly interesting yesterday morning as Singapore-based Frasers Centrepoint outbid Stockland and received the support of Australand’s board.

The Frasers proposal values Australand, which opened its books to Stockland last week, at $4.48 a share, above the effective $4.35 a share offer of Stockland’s ‘final’ bid. The Stockland valuation took a turn during trading as investors pushed stock of the suitor high enough that its cash-and-scrip offer is now worth $4.51 a share. Still, it seems Australand is set on Frasers, which has offered a special distribution that could bring its offer to over $4.60 a share.

In the meantime, Stockland is weighing its options as investors buy in on the prospect of a healthy profit from the underbidder’s stake in Australand as well as a tinge of relief that it has been outbid.

In the IPO market, Monash IVF has successfully completed a bookbuild at the top end of its range. Monash will raise $315 million through its float, with current owner Ironbridge able to sell down to 5 per cent due to strong demand. The fertility company will hit ASX boards on June 27.

Meanwhile, Woolworths’ divestment plan for a portfolio of pubs is ramping up as first round bids for the $600m portfolio are reportedly due next week. According to the AFRCharter Hall Group is among the list of interested suitors, alongside favourite ALE Property Group, though Woolworths may be more inclined to pursue a float given the surging IPO market.

In resources, Canada’s B2 Gold is set to claim control of ASX-listed Papillon Resources in a deal worth about $615m. The premium on the takeover is a healthy 20.6 per cent at the current time, though it was over 36 per cent at the time of the offer before a gold price retreat hit the value of B2 Gold and the all-scrip deal. Papillon investors still have reason to cheer as the firm’s flagship project may have had issues getting into production quickly in the current climate.

Shareholders in Noni B also enjoyed a good day at the office yesterday as the retailer divulged news of takeover approaches. The development pushed stock in the firm up 45 per cent despite admissions that talks were still at a preliminary stage.

Finally, three of the biggest names in Australian business have teamed on an $80m dollar property deal in Sydney, with Gerry HarveyJohn Singleton and Mark Carnegie forming a consortium to purchase CFS Retail Property Trust’s leasehold interest in The Entertainment Quarter.