Propertylink announced this week that it obtained a better offer from ESR after it held discussions with them following their non-binding, proposal to acquire all the Propertylink securities in September.
The new offer at $1.20 per security in cash will be issued in the form of a new Proposal which is attached to a Bid Implementation Agreement "BIA" which the parties have entered into.
The BIA will require the Board to endorse the Proposal provided that an Independent Expert opining that the offer is fair and reasonable to Propertylink security holders not associated with ESR and in the absence of a superior proposal.
Propertylink has entered into a Process Deed with ESR which sets out the terms of, and steps required to finalise, the Proposal. The finalisation of the Proposal is subject to satisfactory completion of due diligence by ESR and negotiation of a BIA on terms acceptable to Propertylink and ESR.
The Proposal price of $1.201 represents a:
14.3% premium to the closing price of Propertylink securities at 20 September 2018 of $1.05, being the day prior to the announcement of ESR’s initial proposal to acquire Propertylink;
15.4% premium to Propertylink’s net tangible assets per security as at 30 June 2018 of $1.04;
15.2% premium to the 6 month VWAP of Propertylink securities to 20 September 2018 of $1.04; and
4.3% increment to ESR’s initial proposal price of $1.15.
In addition to the announcement to accept ESR's proposal, Propertylink also announced that it would not continue the proposal to acquire Centuria Industrial REIT.
Shortly after the ESR announcement, Centuria increased its stake in Propertylink to 19.5% and endorsed the strategy of Propertylink.