The latest revised proposal by 360 Capital to purchase all remaining IAP securities has been rejected. Image: Canva.
  • Latest proposal priced at $1.72 per stapled security
  • Is the third proposal from 360 Capital
  • Original proposal was $1.6047

The latest

Today, Irongate Group (ASX: IAP) announced that it has again rejected a proposal from 360 Capital to take over the company.

The third proposal came from both 360 Capital Group and 360 Capital REIT to acquire, by way of an agreed trust scheme, all of the stapled securities in IAP which 360 Capital does not already own for $1.72 per IAP stapled security.

IAP announced the receipt of the revised proposal on December 15 2021.

360 Capital’s latest offer of $1.72 reflects a 7.2% increase on the original proposal made in October, or a 3.9% increase on the second proposal made in November.

In a statement, IAP said:

“[The Board] is of the firm view that the Revised Indicative Proposal does not adequately reflect the underlying value of IAP having regard to its high-quality office and industrial real estate portfolio, the value-add upside potential embedded in the portfolio, and the value and growth potential of its third-party funds management business.”


Some context

IAP announced that it received the proposal from 360 Capital (ASX: TGP) and 360 Capital REIT (ASX: TOT) on October 15 2021, priced at $1.6047 per IAP stapled security.

At the time, the offer was noted as highly conditional.

On October 27, Irongate announced the board had unanimously concluded that the indicative proposal by 360 Capital “materially [undervalued] IAP and therefore does not represent a compelling proposition for security holders.”

In the same statement, IAP said “[the Board] also notes 360 Capital has not provided certainty on its ability to fund the Indicative Proposal.”

In mid-November, a revised proposal was made, priced at $1.6547 per stapled security.

Irongate again rejected it on the grounds that it “… materially undervalued IAP and therefore does not represent a compelling proposition for security holders.”

At the time, 360 Capital responded with “[the company] is surprised the IAP Board has not given its security holders the opportunity to be aware of and to consider the Improved Indicative Proposal before releasing its Improved NBIO Rejection Announcement.”

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