Listed investment platform Centuria Capital has struck a $600 million deal to merge with Perth-based Primewest, to create a $15.5 billion property fund management platform.
Centuria, led jointly by John McBain and Jason Huljich, already entered into a bid implementation deed with Primewest, through an off-market takeover offer.
ASX-listed Primewest’s board led by executive chairman Jon Bond has unanimously recommended the Merger, in the absence of a superior proposal.
That support is subject to an independent expert assessing the merger as fair and reasonable Primewest’s investors.
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Under the merger terms, Primewest shareholders will receive consideration of $1.51 per Primewest security, comprising 20¢ in cash and 0.473 Centuria securities per Primewest security.
The merged group would have assets under management of $15.5 billion, which represents, a 52 per cent lift in Centuria’s current managed assets, taking the merged platform into the ranks of the larger property fund managers.
The merged group would have a market capitalisation of around $2.2 billion, making it likely that it would be included S&P/ASX 200 index.
“The merger represents an exciting opportunity to combine two highly complementary real estate platforms that share similar philosophies and strong track records,” Mr McBain said.
“Primewest has a strong distribution platform and expertise across a range of sectors and geographies which are complementary to Centuria.”
Primewest’s directors, including its founding directors John Bond, David Schwartz and Jim Litis, who collectively own 53 per cent of total securities in Primewest, have confirmed they intend to accept the merger.
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