ING today issued a formal takeover notice for Urbus, which if successful would create the country's second-largest listed property trust, with a market capitalisation of about $550 million.
Wednesday, April 20th 2005, 8:35AM
by The Landlord
The offer is scheduled to open on April 27, and close on 3 June.
The Urbus board is recommending shareholders accept the offer.
Under the offer Urbus shareholders and convertible noteholders would receive 0.980 ING units for every one Urbus share or convertible note held.
The boards of both ING and Urbus have said they think a merged entity would provide a number of benefits for Urbus security holders.
Among those would be higher gross earnings, a larger more diversified property portfolio, and greater liquidity of their interests on the NZSX.
The companies said in a statement that broader benefits of the deal included costs savings for the combined group, greater investment opportunities and a simplified capital structure.
