Challenger Life, which is a wholly-owned subsidiary of Challenger Limited, currently owns approximately 58.7 per cent of all CDI units.
Unitholders of CDI who accept the offer will receive a cash consideration of $2.74 per CDI unit.
The independent directors of Challenger Listed Investments Limited, the responsible entity of CDI, have indicated they will unanimously recommend that CDI unitholders accept the offer in the absence of a superior offer.
Challenger Life chief executive Richard Howes said CDI units have traded at a material discount to net tangible assets (NTA), and the offer "represents a compelling liquidity opportunity for all CDI unitholders and is at a premium to both the latest published NTA and the closing unit price on 10 April 2014".
“Challenger Life manages a cash flow matched portfolio and its desire to increase its property investments is a result of seeking longer dated asset cash flows due to significant growth in lifetime annuity sales," Mr Howes said.
“The offer to acquire the units in CDI that it does not currently own is part of a broader Challenger Life investment strategy to review the mix and optimise its property portfolio”, he added.
