Commonwealth Bank of Australia said it will accept a joint A$3 billion ($2.7 billion) bid from the Canada Pension Plan Investment Board and Dexus Property Group for the office property fund it manages.
Australia’s biggest bank, which owns 7.8 percent of Commonwealth Property Office Fund, will accept the A$1.268 a share offer from Dexus and the CPPIB if its support will take their stake to 50.1 percent, the lender said in a regulatory filing today. It won’t agree with a rival bid of A$1.235 a share made by GPT Group, it said.
GPT and Dexus, Australia’s biggest listed office landlord, are fighting for control of the trust, which has A$3.9 billion of office buildings across the country’s biggest cities, as Commonwealth Bank seeks to exit its property business. Dexus, which has a 14.9 percent interest in CPA, as the fund is called, said last month it would keep its stake, preventing GPT from obtaining full control. GPT controls about 8 percent of CPA.
Dexus also agreed with CBA to pay A$41 million to take over the management of the office trust when it acquires more than half of the outstanding shares, it said in a filing last week.
Dexus shares fell 1.5 percent to A$1.005 at the close of trading in Sydney, before today’s announcement. CPA shares slipped 0.8 percent to A$1.265 and Commonwealth Bank shares lost 0.3 percent to A$73.68, compared with a 0.1 percent drop in the benchmark S&P/ASX 200 index.