FKP Property Rises on Report of Talks on $1 Billion Retirement Assets Sale

FKP Property Group (FKP) shares surged by the most in almost 1 1/2 years after a media report that the company may receive an offer for its A$1 billion ($1.03 billion) retirement properties.

A large Chinese conglomerate has been in talks with Mulpha International Bhd (MIT), FKP’s biggest shareholder, and may make an offer for the retirement assets, the Australian Financial Review reported today in its Street Talk column, without citing anyone. The report didn’t name the potential bidder.

FKP jumped 11 percent to 62 Australian cents at the 4:10 p.m. close of trading in Sydney, the most since Aug. 28, 2009.

The company has had various discussions with third parties on restructuring the retirement portfolio, FKP said in a statement to the stock exchange after the market’s close.

“To date, none of these discussions have progressed to a level of development which the company believes would require disclosure,” according to the FKP statement.

Stockland (SGP), FKP’s second-biggest investor with 14.5 percent of shares, has first right of refusal over the retirement assets. Stockland shares fell 2.1 percent to A$3.34.

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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