The $2.6 billion takeover of Australand by Singapore’s Frasers Centrepoint could face yet another hurdle, with speculation running hot that a fund linked to Hong Kong’s Pacific Alliance Group is building a stake in the company.
Sparking the chatter was a substantial shareholder notice for Australand released yesterday on the Australian stock exchange that was not issued by Frasers as expected, but rather Credit Suisse.
Credit Suisse’s holding has been linked to Pacific Alliance, which recently purchased some of Australand’s debt.
The notice showed the mystery investor’s stake rising to 8.95 per cent, from 7.91 per cent, in the space of a few days.
Rival suitor Stockland is also continuing to frustrate Frasers’ bid with the company yet to sell its 19.9 per cent stake into Frasers’ cash offer of $4.48 per share. Stockland again yesterday declined to comment on its intentions for its stake.
Frasers still holds a little over 60 per cent of Australand, with its stake barely budging in recent days.
Australand managing director Bob Johnston netted $4.25 million from divesting his holding in the company. He was appointed MD in 2007 and is highly regarded in the Australian property sector.
Frasers has outlined plans to delist Australand even if its holding does not reach the threshold for compulsory acquisition of 90 per cent.
However, sources said Frasers would have trouble delisting Australand without owning at least 75 per cent of the shares.