Embattled property fund manager Aspen Group has knocked back a $217.3 million takeover offer for its parks fund from Sunsuper’s Discovery Holiday Parks.
Industry watchers have suggested the spurning of the offer could result in a stoush between Discovery and Aspen that could boil over in a matter of days. Discovery has declined to comment.
Adelaide-based Discovery, which Sunsuper acquired this year from private equity group Allegro, is the largest owner and operator of lifestyle holiday parks in Australia, with more than 33 destinations across the country.
The rejection marks the second offer the unlisted Aspen Parks Property Fund has rebuffed in the past month, with retirement parks operator and developer Ingenia Communities dropping its offer citing the shortness of the due diligence period the fund offered its suitor.
Ingenia had offered to acquire all units in the unlisted fund for an undisclosed amount. The bid from Discovery offered either cash or scrip.
“The independent board committee has decided that the Discovery proposal does not provide security holders with sufficient value and certainty,” Aspen chief executive Clem Salwin said in a fund announcement. “If a more certain and superior proposal were made, the independent board committee will give it due consideration.”
Aspen has since launched a $40 million raising for the parks fund and is underwriting the raising.
The capital raising is expected to close tomorrow and it is unclear what level of interest has been received from existing unitholders in the fund.
Aspen already owns 12.5 per cent of the fund and is expected to increase its stake — possibly to 40 per cent — following the raising.