FKP property group has described a Lend Lease Corporation (LLC) takeover bid as “unsolicited, highly conditional and incomplete” in a statement to the Australian Stock Exchange (ASX) today.
LLC said it was ‘disappointed’ by FKP’s response.
LLC had offered to acquire all FKP securities at a value of $5 each, paid for in a mixture of LLC scrip and cash.
However, the FKP board believes that the proposal substantially undervalues FKP.
FKP chairman Ben Macdonald said “the LLC proposal is opportunistic and does not reflect FKP’s underlying value and future prospects”.
LLC responded to the FKP statement by claiming the proposed price would represent a substantial 65 per cent premium on the weighted average FKP security price over the three months preceding LLC’s approach.
Because of its high levels of debt, the Australian listed property sector has been subject to volatility caused by the global credit crunch.
LLC said that its strong balance sheet and low debt would be a significant asset to FKP.
FKP has retained Macquarie Capital advisers and Minter Ellison to advise it in relation to the takeover bid, while LLC has said it remains open to continuing discussions.
