GPT makes play for CPA

Suitor lobs cash-and-scrip takeover offer for Commonwealth Property Office Fund.

GPT Group (GPT) will make an off-market cash-and-scrip takeover offer for all outstanding units in Commonwealth Property Office Fund (CPA).  

In a statement to the Australian Securities Exchange, GPT said the offer would comprise of 0.141 GPT securities per CPA unit and $0.75325 for every CPA unit

GPT added the cash component will be reduced by the amount of any distribution paid on a CPA unit.

The group said, based on GPT's closing price on November 18, its offer values CPA units at $1.272. 

GPT said the proposed acquisition was consistent with its strategy and presented "a unique growth opportunity" as it would drive its total return, further position GPT as the leading owner and manager of office assets in Australia and expand its funds management platform.

"The acquisition would increase GPT’s external funds under management (FUM) by $1.1 billion to $8.2 billion via the sale of the assets to  GPT Wholesale Office Fund (GWOF) and allows scope for additional fund initiatives providing a significant step towards its FUM growth targets," the statement said.

GPT said it considered its offer as superior to the one lodged by Dexus Property Group and the Canada Pension Plan Investment Board.

It added it was confident the Commonwealth Managed Investments Ltd board, as the responsible entity of CPA, would recommend the offer.

Earlier this month, the Commonwealth Managed Investments Ltd board recommended a sweetened takeover bid from Dexus Property Group and the Canada Pension Plan Investment Board for CPA.

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.