The three-way battle between Propertylink, Centuria and ESR appears to be coming to a close following ESR’s increased takeover offer for Propertylink. Pan-logistics player, e-Shang Redwood (ESR) increased its takeover offer for Propertylink to $1.20 per security, from $1.15 previously. The Board of Propertylink indicated that it intends to unanimously recommend the offer to securityholders, subject to an independent expert opinion and in the absence of a higher offer. The revised offer of $723M is at a 15% premium to Propertylink’s NTA of $1.04 per unit.
Propertylink have also announced that, as a result, it no longer intends to pursue its proposal to acquire Centuria Industrial REIT, which was one of the conditions of the ESR proposal. ESR is expected to undertake due diligence on Propertylink’s proposal before a final proposal is completed and sent to securityholders to vote.
The successful acquisition of Propertylink is expected to establish ESR as a significant player in the Australian logistics market, following its acquisition of the Commercial and Industrial Property portfolio for $102M in July 2018.