CBA to sell property fund to specialist manager
CBA will sell its Commonwealth Property Office (CPO) to listed property group Dexus after a revised offer, lodged on Friday, was accepted by Commonwealth Managed Investments Limited (CMIL).
The revised offer will result in Dexus purchasing the office fund for mix of cash and scrip.
CPO Fund holders will receive for each CPO share 0.4516 Dexus stapled securities, a cash payment of $0.71 and a further payment of about $0.017 dependent on operations of the fund from 1 January 2014 to the final implementation date of the deal.
Collectively CPO fund holders will receive $1.21 for each CPO share, which is a 1.3 per cent premium from the fund's 7 November closing price of $1.19, with the final implementation date likely to be 31 March 2014.
Dexus made the offer to take-over the CPO Fund in conjunction with the Canadian Pension Plan Investment Board (CPPIB). The two entered into a Process Agreement with CMIL, as well as a confidentiality and exclusivity agreement with the Commonwealth Bank of Australia (CBA).
This latter agreement will cover the possible transition of the management of the CPO Fund to Dexus and CPPIB in the event the latter obtains control of CPO, with CBA granting due diligence to Dexus until 24 December 2013.
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