- 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 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).”