By a staff reporter
Commonwealth Property Office Fund Ltd (CPA) has rejected a takeover bid from GPT Group Ltd in favour of a rival bid from Dexus Property Group Ltd and Canada Pension Plan Investment Board.
In its Target's Statement to the Australian Securities Exchange, Commonwealth Managed Investments Ltd's (CMIL's) independent directors, acting on behalf of CPA, unanimously recommended its shareholders reject the offer.
GPT Group made an off-market offer of 0.141 GPT shares for all CPA shares, and 75.3525 cents – reduced by the amount of any distribution paid on a CPA unit – on November 19.
The rival, sweetened bid from Dexus-CPPIB is valued at $1.27 per CPA unit, including a cash payment of 77.45 cents and 0.4516 Dexus stapled securities.
CMIL chairman Richard Haddock said the group's independent directors would issue another Target's Statement recommending shareholders accept the Dexus offer, in the absence of a superior proposal, "in due course".