Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


AMP Property Portfolio announces takeover offer

15 September 2005

AMP Property Portfolio announces takeover offer for Capital Properties New Zealand

AMP Property Portfolio (APP) today announced that it intends to make a full takeover offer (Offer) for all the ordinary shares in Capital Properties New Zealand (CNZ). The Offer will be $1.42 cash per share.

The Offer of $1.42 is generous and represents a very full price for CNZ. It is at a substantial premium to comparable benchmarks, and is:
-ƒn4% higher than the highest price at which CNZ shares have ever traded on the NZSX ($1.36)
-ƒn8% higher than the NZSX closing price before the Offer was announced ($1.31)
-ƒn10% higher than CNZ¡¦s net tangible assets at last balance date of 31 March 2005 ($1.29)
-ƒn24% higher than the average valuation of CNZ by four independent analysts
-ƒn39% higher than the CNZ price on the NZSX in November 2004, before the corporate activity for CNZ shares began ($1.02). The Offer is principally subject to APP holding 50 percent or more of CNZ¡¦s voting rights (APP currently has a 15.7% stake in CNZ) and obtaining OIO consent on usual terms.

The acceptance level is set at the minimum required by the Takeovers Code. The Offer is scheduled to be open for only 30 days, opening on 30 September 2005 and closing on 31 October 2005. CNZ is listed on the New Zealand Stock Exchange and is an investor in commercial property.

Its portfolio comprises properties in Wellington (60%), Auckland (32%) and New Plymouth (8%) valued at $536.6 million at 31 March 2005. ¡§The intended offer for CNZ shares is consistent with our strategy of investing in quality New Zealand properties,¡¨ said Stephen Costley, General Manager, APP.

CNZ¡¦s portfolio is primarily occupied by government and private sector tenants, and includes a range of properties such as Bowen House, Novell House and Lambton Square in Wellington. ¡§CNZ¡¦s portfolio of properties is complementary to APP¡¦s own portfolio, and its weighting towards the Wellington region is also a positive feature for APP. ¡§Increasing our holding in CNZ 2 will diversify our geographical spread, and increase our investment in this market,¡¨ said Mr Costley.

Catherine Savage, Managing Director of AMP Capital Investors (NZ), said the offer is consistent with AMP Capital's strategy of seeking new investment opportunities. ¡§APP is New Zealand's largest unlisted property vehicle and invests in office, retail and industrial assets.

This announcement is an exciting development for our business and demonstrates our commitment to seeking new investment opportunities on behalf of our clients,¡¨ said Ms Savage. APP¡¦s offer will not extend to CNZ¡¦s outstanding Capital Notes. These will remain outstanding under their existing terms and conditions.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news