By a staff reporter, with AAP
GPT Group Ltd has increased its substantial holding in Commonwealth Property Office Fund Ltd (CPA), despite CPA advising its shareholders to reject GPT's takeover bid just before Christmas.
In a statement to the Australian Securities Exchange, GPT disclosed its voting power in CPA has increased to 11.44 per cent to 7.97 per cent.
On Christmas Eve, Commonwealth Managed Investments Ltd's (CMIL's) independent directors, acting on behalf of CPA, unanimously recommended its shareholders reject GPT's offer in favour of a rival bid from Dexus Property Group Ltd and Canada Pension Plan Investment Board.
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 and the Canada Pension Plan Investment Board is valued at $1.27 per CPA unit, including a cash payment of 77.45 cents and 0.4516 Dexus stapled securities.
Dexus takeover offer for CPA now open
Earlier today, the Dexus-CPPIB consortium announced that it had started mailing its bidder's statement to CPA unitholders.
"Accordingly, the Dexus offer (Dexus-CPPIB offer) is now open for acceptance," Dexus said in a statement.
Under the Dexus-CPPIB offer, CPA unitholders will be entitled to retain the CPA distribution for the six months ended December 31, 2013, which is estimated to be 3.5 cents per CPA unit and payable in February 2014.
The consortium's offer has no minimum acceptance condition and is scheduled to close on February 7, 2014.
CMIL has said the Dexus offer is superior to the GPT offer.
In its target's statement in response to the GPT offer, CMIL valued the Dexus offer at $1.246 per CPA unit and the GPT offer at $1.203, based on the prices of Dexus and GPT securities on December 20, 2013.
CPA invests in prime quality office property in central business districts and major suburban markets across Australia.
CPA holds 25 assets worth about $3.9 billion in total.
CPA is externally managed by CMIL, which is a wholly-owned subsidiary of the Commonwealth Bank.