AMP appears to be one of the few Australian institutions given a look in on CapitaLand’s 39 per cent selldown of Australand stock, with the wealth manager revealing today it had snapped up a 5.84 per cent stake.
Citi ran Singapore real estate giant CapitaLand’s exit of its holding overnight Monday, with Stockland taking 15.7 per cent of the bookbuild, and the rest going to institutional investors.
For Stockland, the transaction formed part of a broader 19.9 per cent “strategic stake” purchase for $435.3 million, with the rest coming from indirect holdings.
Participants in CapitaLand’s first selldown – which saw it offload 20 per cent last November – are understood to have been given priority for the bookbuild this week.
It is also understood that CapitaLand’s existing shareholders and offshore investors were given priority over Australian institutions.
AMP’s ability to snare a 5.84 per cent stake indicates it likely participated in the first tranche in November, and points to its strong relationship with Citi.
The move increased the wealth giant’s Australand holding to 14.13 per cent from 8.29 per cent. AMP is understood to have paid $3.72 a share.
“If you are being told there is a strategic buyer, it doesn’t take a genius to work out that it’s worth buying stock at $3.72 that is going to be worth at least four-something in a takeover,” one analyst said.
JP Morgan analysts Adam Fairfax, Cameron Wood and Nick Mannion said in a note yesterday that many local investors appeared not to have been offered CapitaLand’s stock.
“Seems most of the ALZ stock went offshore to CAPL holders (or at least that’s the version I’ve heard too many times to suggest there’s not some truth to the story),” the note said.
When CapitaLand started its selldown in November, it signalled that control of Australand would be up for grabs.
Stockland paid an average $3.78 per share for its strategic stake in Australand.