this is an extract from the AGM re the proposed t/over of LLP. When he talks about "they" s/h need to raise min of $300m, he intimates that it is ourside s/h who need to put up the $300m - he fails to say that LLC will need to put up $129m of the $300m !
**************************************** A major investment in the near term is the proposed acquisition of the securities in Lend Lease Primelife that we do not already own. Whether or not that acquisition proceeds will be determined by a vote of security holders in Primelife at their meeting on December 8. Lend Lease cannot vote on this proposal at that meeting. We believe this transaction makes sense for all stakeholders. For the non Lend Lease security holders in Primelife it provides certainty of an exit for cash at a slight premium to the net tangible assets of that business as at June 2009. This is at a time when they would otherwise be called on to contribute a minimum of A$300 million of equity which will be highly dilutive to their existing investment and still provide Primelife with no real capacity for growth or a return to paying distributions. While the Primelife vehicle is capital constrained as a stand alone business, it can do a lot better as a part of the broader Lend Lease Group given our much stronger balance sheet, cost of funds advantage and capacity to add scale. It also fits with our strategic focus on the long term trend toward an ageing population.
We believe our offer to Primelife is demonstrably fair and reasonable and is in the best interests of the security holders. We are pleased to see that view supported by the Independent Expert who has reviewed our proposal and also that Primelife’s Independent Directors unanimously recommend its acceptance.
LLP Price at posting:
30.0¢ Sentiment: None Disclosure: Held
