Australia's GPT quits CPA takeover battle
The GPT Group announced that it will not make a higher takeover offer for the Commonwealth Bank-controlled fund Commonwealth Property Office Fund (CPA). The decision made way for a rival offer from the Canada Pension Investment Board (CPPIB) and Dexus Property, according to The Sydney Morning Herald (SMH).
In a regulatory filing, GPT said it would not increase its cash-and-stock offer for CPA. The company also said the offer would be closed on January 24, the report said.
The decision allows Dexus and CPPIB to gain control of CPA. The latter holds $3.9 billion of office assets across Australia, the report added.
Dexus and the Canadian fund made a $1.244 rival offer which has been supported by both CPA's board and the Commonwealth Bank. Last week, GPT's unlisted funds agreed to acquire $1.2 billion of buildings owned by CPA in the event that Dexus gains control of the trust, the report explained.
GPT presently holds 11.7% of the shares of CPA. In a statement, GPT managing director Michael Cameron explained that the company decided not to increase or extend its bid after it considered the Dexus offer, the report stated.
Dexus now holds a 25.4% stake in CPA, SMH reported.