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Cromwell selling 10pct stake in Investa

Rebecca Gredley  |  04 Oct 2017Text size  Decrease  Increase  |  
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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.

 

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