The directors of APN Funds Management Limited (APNFM), a responsible entity (RE) of Generation Healthcare REIT, have unanimously recommended to Generation’s unit-holders to accept the all-cash, unconditional off-market takeover offer by NWH Australia Asset Co Pty Ltd as trustee for NHW Australia Asset Trust (NorthWest Australia).
NorthWest Australia, a controlled entity of a Canada-based specialist healthcare property investment group NorthWest Healthcare Property Real Investment Trust, announced in April its initial offer to acquire all ordinary units in Generation for $2.24 per unit.
However, the APNFM directors resolved that the initial offer had undervalued Generation units and, following negotiations with NorthWest Australia, the firm had agreed to increase its offer to $2.30 per Generation unit.
According to the directors of APNFM this represented full and fair value for Generation unit-holders and was consistent with the opinion of an independent expert, EY Transaction Advisory Services which also concluded that the offer was “fair and reasonable”.
As a consequence and in the absence of a superior proposal, the directors of APNFM, in a chairman’s letter announced today to the Australian Securities Exchange (ASX), recommended the Generation unit-holders to accept this offer.
The offer is due to close on 8 June, unless extended or withdrawn.
