Abacus Property and Charter Hall ((CHC)) have acquired a 19.9% strategic interest in Australian Unity Office Fund ((AOF)) for $95.6m, equivalent to $2.95 per unit. Australian Unity Office has since released a notice to ASX stating it has received an unsolicited takeover proposal.
Credit Suisse calculates the offer would represent a 6.1% premium to the last closing price. The broker estimates the deal would be around 8.5% accretive in FY20 under a formal takeover scenario. Outperform rating and $4 target maintained.
Sector: Real Estate.
Target price is $4.00.Current Price is $4.02. Difference: ($0.02) – (brackets indicate current price is over target). If ABP meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
