6-for-10 offer prices Newmarket at 57c
The National Property Trust launched a 6-for-10 bid today for the Newmarket Property Trust, on the proviso that it also gains control of Newmarket’s management company.
Symphony Group Ltd, headed by Chris Minty & former Chase Corp executive chairman Colin Reynolds, has already made a bid for the management company, controlled by Sovereign Ltd, and has acquired 19.9% of the listed trust’s units from Sovereign in a price range of 43-51.6c.
National gave notice under the stock exchange’s listing rules notice & pause provisions that it intends to make a full takeover offer. Tuesday’s closing price of 95c for National equates to 57c/unit for Newmarket, whose units closed up 3c at 51c.
Conditions include 50% acceptance, exemption from the requirement to issue a prospectus, purchase of all shares in Newmarket Property Management Ltd.
National said it would have to issue 40.6 million units for a full takeover. Metropolitan Life Assurance Co of NZ Ltd (now part of Sovereign/ASB/Commonwealth Bank of Australia) has 38.01% of Newmarket and would hold 16.25% of National.
National said it would deliver its takeover notice on Monday 20 May, post offers to Newmarket unitholders on Tuesday 4 June and take acceptances until Friday 5 July.
When National tried to merge with Newmarket in 1999, National had a $55 million portfolio and Newmarket $61 million. Newmarket went to $82 million when it acquired the AA Centre in Auckland, which was to have been an acquisition for the new enlarged trust.
Now National has 11 properties worth $144 million while Newmarket has $80 million of property. That would rise to about $140 million if Newmarket bought the 2 buildings Symphony wants to sell it, the AGC building at Viaduct Harbour and Ericsson House on Carlton Gore Rd.