Centuria confirmed today that it has secured greater than 90% of Primewest securities and that it now intends to exercise its right to comspulsorily acquire all outstanding Primewest securities, taking Centuria to $15bn of assets under management.
Centuria and Primewest are high-quality, complementary funds management platforms that share similar investment philosophies and strong track records. With few alternative bidders in the market and the strong support of the Primewest Directors, Centuria were likely to succeed in the take over.
The implied final offer price of $1.51 per Primewest security represents a:
• 3.1% premium to Primewest’s last close price of $1.465 per security on 16 April 2021;
• 7.0% premium to Primewest’s 5-day VWAP of $1.412 per security on 16 April 2021; and
• 51.0% premium to Primewest’s IPO offer price of $1.00 per security on 8 November 2019
Centuria Chairman Garry Charny commented “The proposed Centuria/Primewest Merger is consistent with Centuria’s dual strategy of asset acquisitions and corporate M&A, where this is sympathetic to Centuria’s business model. Primewest is a high quality, well established fund manager and the Centuria board looks forward to the successful completion of the Merger and building on Centuria’s position as a leading Australasian property fund manager.”
The compulsory acquisition of the remaining units will be on the same terms as the earlier Centuria Offer, consisting of ;
• $0.20 of cash per Primewest security; and
• 0.473 Centuria securities per Primewest security, equating to $1.31 based on Centuria’s closing price on 16 April 2021.
Centuria Joint CEO, John McBain commented “The Merger represents an exciting opportunity to combine two highly complementary real estate platforms that share similar philosophies and strong track records. Primewest has a strong distribution platform and expertise across a range of sectors and geographies which are complementary to Centuria. Joint CEO Jason Huljich and I will be delighted to welcome the Primewest executives to the Centuria group and look forward to working closely with them to grow the combined platform. We believe the merged group will be strategically poised for further growth in the healthcare and agricultural sectors in particular, as well as the traditional real estate sectors.”
Further Information
Refer to our earlier articles for further information;
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