Australian Unity Office Fund (ASX: AOF) has received a higher indicative takeover offer of $3.04 per unit from CHAB Office Trust, the joint venture between Abacus Property Group (ASX: ABP) and Charter Hall Group (ASX: CHC). Whilst on the face of it, the $3.04 per unit price is higher than the prior indicative offer of $2.95 per unit, the new offer will be reduced by any distributions paid. This could bring the effective price back to around $3.00 per unit, assuming a distribution of 3.95 cpu for September 2019. The new proposal comes off the back of AOF announcing that it expects its NTA to increase by 12cpu to $2.79 per unit for the 30 June 2019 period.
The consortium currently already owns a 19.9% stake in AOF, and the new indicative offer values AOF at around $495M. The Board of the Responsible Entity of AOF has advised investors to do nothing at this stage as the offer is being considered by the independent directors.