Property developer Stockland (SGP) has lobbed an increased and final takeover offer for rival Australand (ALZ), lifting its previous bid of $4.20 per share to $4.35 per share.
Stockland will offer 1.124 of its securities for each Australand security in a full scrip proposal, valuing the shares at $4.35 each and bringing the total value of the bid to $2.5 billion.
The group said the offer represents a 12.1 per cent premium to Australand's volume weighted average price (VWAP) of $3.88 for the three month period to March 18, the day prior to Stockland acquiring a 19.9 per cent interest in Australand.
The group added it also represented a 22.2 per cent premium to Australand's net tangible assets per share.
As an alternative consideration, Stockland also said it was prepared to offer a reduced scrip ratio, together with a cash component up to an aggregate of $250 million, with the structure to be agreed with the Australand board.
The new offer comes after the two companies held talks following the rejection of the first takeover bid in April.
Australand is yet to respond to the increased offer.