Australia’s Centuria Capital Group on Monday said it intends to buy the remaining shares of New Zealand’s Augusta Capital Ltd for NZ$130 million ($83.5 million), months after pulling its previous takeover offer amid volatile market conditions.
Fund manager Centuria, which owns 23.3% of Augusta, said Augusta shareholders will receive NZ$0.20 in cash and 0.392 of a Centuria stapled security for each Augusta share – an implied offer price of NZ$1 per Augusta share.
The implied price represents a 46% premium to Augusta’s last close on June 12.
Centuria in January aimed to buy 100% of Augusta with a cash and stock offer of NZ$2 per Augusta share. It withdrew the bid in March due to volatile market conditions and economic disruption brought about by the coronavirus outbreak, which caused far-reaching commercial and social restrictions.
It subsequently bought a 23.3% stake in Augusta in May via a capital raising.
Both Australia and New Zealand have since eased the restrictions and markets conditions have become relatively stable.
Augusta shares jumped as much as 40% to NZ$0.96 following Centuria’s announcement. It recommended its shareholders to not take any action on the offer.