Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Cromwell selling 10pct stake in Investa

Rebecca Gredley  |  04 Oct 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Queensland-based Cromwell Property Group (ASX: CMW) is selling its 10 per cent stake in Investa Office Fund (ASX: IOF) after failing with a $3 billion takeover bid.

Cromwell made an unsolicited, indicative proposal in April 2016 but chief executive Paul Weightman now believes a friendly takeover is unlikely to succeed regardless of how much is offered.

"The best way forward for Cromwell security holders is to realise the value in our investment," Mr Weightman said on Wednesday.

Investa Wholesale Funds Management will buy the stake for $4.65 per share to become the company's largest shareholder, giving Cromwell a profit on the $4.24 it paid when it acquired 9.83 per cent of Investa in April 2016.

Cromwell blocked a $2.5 billion takeover by Dexus Property Group (ASX: DXS) after buying its stake, but its own bid stumbled when Investa's board refused to grant access to its portfolio because of concerns over how Cromwell would fund the deal.


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend