FKP Property Group, the Australian real estate company backed by Malaysia’s Mulpha International Bhd., said it is in talks with retirement village operator Aevum Ltd. about a possible merger with a listed unit.
“Early confidential discussions have been held in relation to a potential transaction involving a merger between Aevum and FKP’s subsidiary, Forest Place Group Ltd.,” Brisbane-based FKP said today in a statement to the Australian stock exchange.
Aevum, the target of a A$266 million ($245 million) takeover offer from its biggest shareholder Stockland, has repeatedly rejected the bid saying it is opportunistic and undervalues the company. Aevum today said in a statement it is in preliminary discussions with several interested parties about alternatives to the Stockland bid.
A report in today’s Australian Financial Review that the two companies are considering a scrip merger at net tangible asset values of A$2.66 for Forest Place and A$2.02 for Aevum “reflects the indicative parameters of one potential transaction structure put to Aevum which is under consideration,” Aevum said in the statement.
Aevum’s board is willing to consider any bid that is “substantially higher” than Stockland’s A$1.50-a-share offer, Andrew Stokes, a spokesman at public relations firm FD Third Person which represents Aevum, said in a telephone interview.
Stockland, which owns 16 percent of Aevum according to Bloomberg data, is FKP’s second-biggest shareholder, with a 14.9 percent stake. Mulpha owns 25 percent of FKP.