finger point stock market chart graph
Image – Canva.
  • Restructure moves company from four trusts to two
  • EGM to be held 22 April 2021, 3:30pm AEST
  • Transaction costs of "simplification" are approximately $35M

Dexus (ASX: DXS) recently provided on the ASX an explanatory memorandum for the intended simplification of the company; the company also announced the extraordinary general meeting, which will take place on Thursday 22 April 2021. at 3:30 pm AEST.

Originally announced alongside the company’s mixed half-yearly results, the company is looking to simplify the corporate structure as Dexus believes it is “… in the best long-term interests of Security holders.”

The simplification according to Dexus being proposed is an “… internal reorganisation from a complex quadruple stapled trust structure to a group comprising two stapled trusts,” and “There will be no change to Dexus’s underlying business and operations, or Security holders’ interests in them, as a result of the Simplification.”

In short, the company is currently the responsible entity of four trusts, the simplification brings that to two.

dexus ASX: DXS restructures and simplifies diagram
Dexus (ASX: DXS) to simplify corporate structure as proposed in a recent ASX announcement. Image – Dexus.

Dexus said the simplification will consist of DXO, an existing Dexus Trust, and DPT.

DXO is noted that following the restructure, DXO will “be unstapled from DDF, DIT and DOT and the units to be issued to Security holders in DPT will be stapled to each DXO Unit.”

DPT on the other hand will be the newly registered “Managed Investment Scheme”. The arrangement noted by Dexus is as follows: “Security holders will, through their holding of New Stapled Securities, own 100% of DPT. DPT will in turn own 100% of DDF, DIT and DOT.”

The Dexus Board considers the move to be advantageous for the company and “unanimously recommends Security holders to vote in favour of the Simplification,” but states potential reasons shareholders may vote against the move include transaction costs of “approximately $35 million (inclusive of non-recoverable GST, if applicable).”


You May Also Like

Westpac sees rates hitting 4.1 per cent and property prices falling further

Westpac said, “2023 will be another challenging year, particularly as the RBA continues to ratchet interest rates higher.”

Home loan hacks: four way to save money on your mortgage

With interest rates expected to keep rising, Compare Club has tips to ease the mortgage pain.

CoreLogic’s guide to navigating a looming ‘fixed-rate cliff’

Many borrowers will feel mortgage pain when they next refinance

How much does it cost to move house?

From cleaning fees to moving services, the costs of moving houses can add up fast

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.