Normal
Interesting article in the Sydney Morning Herald Business section by Carolyn Cummins:http://www.smh.com.au/business/gpt-presses-on-despite-rebuff-from-australand-20121214-2bf4j.htmlBrokers suggest GPT needs to win over CapitaLand (Australands major shareholder) but it will need GPT to offer a premium to NTA. The indicative price is undisclosed at this stage (and I can't work out the value of the residential component of ALZ to back it out of the NTA then add back the premium of $0.243c per share the bid offers to work out the bid).Analysts at CBA appear to think CapitaLand will accept the offer. They also suggest the acquisition will add a further 8.2% to GPT's 2013 earnings.It is worth noting that GPT reported on 13 August 2012, in their interim results for 31 June 2012 that they have Assets of 9 Billion and debt of only 1.8 Billion giving a gearing rate of 20.2% (one of the lowest of all the A-REIT's).GPT is reported to be considering a capital rasing at $3.40 per share but I haven't seen any indication of whether this is true or whether it would be to existing shareholders, fundmanagers & sophisticated investors or a combo of both. Also I haven't seen any indication of how much they need/intend to raise. If you peruse the comparative table below of ALZ and GPT you would note that GPT is three (3) times the size of ALZ and could probably easily raise the necessary funds to acquire ALZ without adversly lifting their Asset/Borrowing gearing rate.Date: Closing 14-12-12 Share: ALZ GPT Closing Price 3.31 3.56 Issued Shares 576,846,597 1,766,785,075 Capital 1,909,362,236 6,289,754,867 Earnings $ 0.2520 0.1789 ROE 7.61% 5.03% Dist $ 0.2150 0.191 Yield % 6.50% 5.37% P/E 13.13 19.90 NTA $ 3.46 3.65 Discount to NTA 4.34% 2.47% I suspect from the market reaction to GPT's announcement that it intended to proceed, that the market already considers it a done deal. ALZ jumped again on Friday and GPT dropped, probably commencing the slide down to the prospective capital raising price of $3.40. I suspect the rejection of the offer by the ALZ board is more to remove the conditions and break fee in the offer and make GPY go unconditional.Disclaimer: The figures used in the table may contain errors and should not be relied upon to make investment decisions. As always do your own research and good luck.
Interesting article in the Sydney Morning Herald Business section by Carolyn Cummins:
http://www.smh.com.au/business/gpt-presses-on-despite-rebuff-from-australand-20121214-2bf4j.html
Brokers suggest GPT needs to win over CapitaLand (Australands major shareholder) but it will need GPT to offer a premium to NTA. The indicative price is undisclosed at this stage (and I can't work out the value of the residential component of ALZ to back it out of the NTA then add back the premium of $0.243c per share the bid offers to work out the bid).
Analysts at CBA appear to think CapitaLand will accept the offer. They also suggest the acquisition will add a further 8.2% to GPT's 2013 earnings.
It is worth noting that GPT reported on 13 August 2012, in their interim results for 31 June 2012 that they have Assets of 9 Billion and debt of only 1.8 Billion giving a gearing rate of 20.2% (one of the lowest of all the A-REIT's).
GPT is reported to be considering a capital rasing at $3.40 per share but I haven't seen any indication of whether this is true or whether it would be to existing shareholders, fundmanagers & sophisticated investors or a combo of both. Also I haven't seen any indication of how much they need/intend to raise. If you peruse the comparative table below of ALZ and GPT you would note that GPT is three (3) times the size of ALZ and could probably easily raise the necessary funds to acquire ALZ without adversly lifting their Asset/Borrowing gearing rate.
I suspect from the market reaction to GPT's announcement that it intended to proceed, that the market already considers it a done deal. ALZ jumped again on Friday and GPT dropped, probably commencing the slide down to the prospective capital raising price of $3.40. I suspect the rejection of the offer by the ALZ board is more to remove the conditions and break fee in the offer and make GPY go unconditional.
Disclaimer: The figures used in the table may contain errors and should not be relied upon to make investment decisions. As always do your own research and good luck.
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.
