SINGAPOREAN property development giant Frasers has launched a $2.6 billion takeover for Australand.
Frasers Centrepoint Limited is offering $4.48 per share cash per Australand security, and will also allow Australand shareholders to keep an expected 12.75-cent-per-share first-half dividend payment.
The bid trumps Australian developer Stockland's offer of 1.124 of its shares per Australand security, which carried a value of around $4.35 per Australand share and valuing the company at more than $2.5 billion.
While Frasers offer is not significantly higher in implied value, it is an all cash offer which tends to be far more attractive to investors than Stockland's mostly share-based bid.
The Frasers bid required Australand to enter into a period of exclusive due diligence, where the Singaporean company can look at its books, and the Australian company has agreed to do so for four weeks.
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