Stockland acquires 5pc of FKP 11:46, Wednesday, 15 October 2008
Sydney - Wednesday - October 15: (RWE Aust Business News) - Stockland (ASX:SGP) has acquired a 5.0 per cent stake in FKP Property's (ASX:FKP) stapled securities via a share placement and will acquire a stake of up to around 13 per cent through partial underwriting of a rights issue. FKP will commence a strategic review of its retirement living assets which could lead to their separation. Stockland will be granted exclusive dealing for a period of two months while the review is undertaken and has first right of refusal over the assets. Stockland's CEO of residential property, Denis Hickey, will be appointed to the FKP board. The initial stake in FKP will be acquired at $2 per security and Stockland will take up its full entitlement in the rights issue at $1.50 per security. It may take up further securities. Stockland will have a stake on completion of a minimum of 10pc and up to around 13pc for a total outlay of a maximum of $80m. The acquisition will be funded from Stockland's existing debt facilities and will increase the gearing ratio by 0.4pc. The transaction will have a minimal dilutive impact on FY09 EPS.
SGP Price at posting:
$4.71 Sentiment: Buy Disclosure: Held
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