Fairvest concludes share swap agreements with shareholders to acquire 50,1% of Arrowhead Properties' issued shares

Posted On Tuesday, 18 May 2021 12:44 Published by
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Fairvest Property Holdings Limited (“Fairvest”) today announced that it had concluded agreements with shareholders of Arrowhead Properties Limited (“Arrowhead”) to acquire 50,1% of Arrowhead B shares through the issue of new Fairvest shares at a swap ratio of 1.85 Fairvest shares per Arrowhead B share.

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In addition, Fairvest has already received undertakings of support from 63.7% of its own shareholders to vote in favour of the resolutions required to implement the swap agreements.

This follows Fairvest’s announcement on 29 April 2021 that it was interested in acquiring a stake in Arrowhead via privately placed share swap transactions following a number of separate approaches from Arrowhead shareholders.

Fairvest CEO, Darren Wilder, said: “We have had very positive engagements with both Arrowhead and Fairvest shareholders as demonstrated by the level of support already achieved for this exciting opportunity to unlock sustainable value over time with the aim of creating a more liquid and well rated REIT of scale.”

Fairvest believes that both sets of shareholders, some holding stakes in both companies, would benefit from the opportunities resulting from a larger balance sheet, active asset management activities, further portfolio rationalisation, operational costs efficiencies and a refocused strategy.

“In parallel, we also continue to engage with the Arrowhead team as we believe that Fairvest’s operational and capital allocation track record can add value within our traditional low-income retail focus as well as other sub-classes of investment property,” added Wilder.

As part of the swap transactions, Fairvest will also propose that its shareholders approve the internalisation of its asset management function to drive value-adding cost efficiencies internally and through M&A activity. A board committee of independent non-executive directors is finalising the details of what will be proposed to Fairvest shareholders in this regard. 

The transactions are subject to the fulfilment of various conditions including regulatory and shareholder approvals. A circular containing the details of the transactions will be sent to Fairvest shareholders in due course.

Last modified on Thursday, 20 May 2021 12:51

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