- The offer will be an off-market takeover bid by Aspen.
- The offer ratio has increased 15.6% from 0.225 APZ securities per EGH share to 0.26 APZ securities.
- Eureka has not yet received any formal approach from Aspen regarding the intended takeover offer.
Aspen Group (ASX: APZ) has today announced its intent to make an off-market takeover offer for all of the ordinary shares in Eureka Group (ASX: EGH).
In Aspen’s release to the market, it notes that EGH shareholders who accept the offer will receive 0.26 fully paid ordinary stapled securities in Aspen Group (comprising Aspen Group Limited and Aspen Property Trust) for every EGH share, subject to conditions.
The company also noted that the offer ratio has increased by 15.6% from its offer of 0.225 APZ securities per EGH share made in an indicative offer to the Eureka Board, announced by Eureka on 29 March 2023.
Aspen’s offer is subject to several conditions, including a 50.1% minimum acceptance condition.
In an ASX announcement, Eureka said at this stage, EGH has not received any formal approach from Aspen regarding the intended takeover offer.
“In the interim, the Directors advise shareholders to take no action* regarding Aspen’s intended takeover offer,” noted the announcement from Eureka.
APZ said there were several benefits and synergies between the businesses. One such synergy is that both are in the fundamental business of providing affordable accommodation.
Aspen also noted that the merged group would have a nationwide footprint, almost 8,000 homes and sites, including 1,200 approved sites for future development. The company noted that a benefit included improved economies of scale and reduced risk.
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* Emphasis removed. Originally: NO ACTION.
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