Cromwell urges shareholders to reject latest ARA bid
Cromwell Property Group has called on its shareholders to reject a takeover bid by ARA Asset Management after the company made a third attempt to elect its nominee Gary Weiss to the Cromwell board.
In an announcement to the Australian Securities Exchange (ASX), the firm said the actions by ARA, which was the firm’s largest shareholder at 24%, equated to a hostile takeover.
“ARA is attempting to secure control of Cromwell by launching its hostile proportional takeover offer and seeking to install its nominees on Cromwell’s board under the guise of refreshing the board to change Cromwell’s already proven strategy.”
Cromwell had already rejected a bid to appoint activist investor Weiss in November 2019 and again in March 2020.
It said the appointment of Weiss would be to the detriment of shareholders.
“ARA’s intentions equate to a takeover by stealth via a hostile and opportunistic proportional offer that undervalues Cromwell and denies Cromwell securityholders the ability to realise their full investment in Cromwell and the control premium to which they are entitled to receive for handing effective control of Cromwell to ARA.”
In July, ARA issued a bidder statement’s where it sought to acquire a further 29% of Cromwell for $0.88125 per share.
AUTHOR
Laura Dew
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