The board of Irongate, previously Investec Australia Property Fund (IAP), has unanimously recommended shareholders accept an A$1.28bn (R14bn) buyout offer from Dutch pension fund PGGM and property investor Charter Hall.
Shareholders are expected to vote on the offer in June, which could lead to the ASX- and JSE-listed group delisting after almost a decade.
Shareholders will receive a cash consideration of A$1.90 per security, while also remaining entitled to a distribution of up to 4.67 Australian cents per share for its year to end-March. The offer represents a 21% premium to Irongate’s closing price on January 28, just before it was announced.
“The proposal is attractive for IAP security holders, as it reflects a premium to IAP’s historic trading prices and the revised updated independent valuation of IAP’s portfolio,” chair Richard Longes said in a statement.
Irongate was listed by the Investec group on the JSE in 2013 and on the ASX in 2019.
It has a portfolio of 36 properties, and the unaudited valuation of its portfolio is expected to raise its net tangible assets per share to A$1.70 at the end of March, which is up 10.4% from December 9. At the end of March, its portfolio is expected to have an unaudited value of A$1.68bn.
The group had rejected three offers from fund manager 360 Capital, the latest, made in late 2021, of $A1.72 per share. The offer was unsolicited and had numerous conditions, including unanimous support from the Irongate board.
By the JSE’s close, shares in Irongate had risen 0.73% to R20.60. They have gained more than 17% since the January 28 announcement, all but wiping out the original premium the offer provided.
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