Wealth management giant AMP has proposed to buy listed property investment boutique MacarthurCook and absorb some of its struggling funds into the business.
Sydney-based AMP has offered $31 million in cash for the Melbourne-housed real estate fund manager, valuing it at $1.35 a share.
AMP’s offer is worth 70 per cent less than the MacarthurCook’s record share price of $4.40 set in March last year.
AMP, with $104 billion of assets, would integrate some of MacarthurCook’s struggling funds into its investment arm, AMP said in a statement to the Australian Securities Exchange (ASX).
The listed MacarthurCook Property Securities Fund had plunged from $1.12 to 56 cents for the year to June 10.
Major shareholder, Ascalon Capital Managers, has already entered a pre-bid agreement with AMP to sell off its 18.37 per cent holding in MacarthurCook.
Ascalon is co-owned by St George Bank and Kaplan Equity.
MacarthurCook managing director Craig Dunstan was unavailable for comment and AMP would not say if they had held talks with MacarthurCook’s second biggest shareholder, Acorn Capital.
MacarthurCook is a sub-adviser and investment manager of the RMR Asia Pacific Real Estate Fund, owned by Massachusetts-based RMR Advisors.
The fund is listed on the American Stock Exchange and has tumbled from US$26.42 to US$14.55 for the year to June 10.
