Aspen up on APPF merger
UPDATE 3.10pm: Shares in Aspen Group were up sharply this morning on news it would merge with the Aspen Parks Property Fund.
Aspen said the merged group would be a leading specialist owner, manager and developer of accommodation parks with a fully integrated management platform.
The combined portfolio of 25 properties, comprising over 5000 sites, valued at $241 million will make it one of the largest accommodation park owner-operators in Australia.
The deal put a value of 50 cents on each APPF security, an 8.2 per cent premium to the fund’s value at the end of June.
APPF shareholders can elect to retain scrip or receive cash for their shares.
Aspen said the merged group was forecast to have full-year 2016 pro forma distribution (on a full year basis) of 12 cents per security, representing a 28 per cent increase on the company’s current distribution guidance and a 9.8 per cent yield on Aspen’s closing price on Friday of $1.225.
Aspen chairman Frank Zipfinger said the directors of the company and APPF consider the merger as a strategic opportunity for both set of shareholders.
“In addition to delivering immediate significant benefits for both sets of securityholders, the merger creates an improved platform for future value creation,” he said.
Aspen chief executive Clem Salwin said the merger represented the final stage in Aspen’s strategic change, to create a simplified business, focused on owning, managing and developing value for money accommodation.
“The merged group will have a stronger position to create shareowner value and to execute its strategy to optimise existing assets, expand the development pipeline and undertake acquisitions,” he said.
Aspen also announced this morning that non-executive director Hugh Martin had tendered his resignation, effective from today.
Aspen shares were up 14.5 cents, or 11.84 per cent, to $1.37 at the close.
Source: The West Australian, 14th September 2015
Originally published as: Aspen up on APPF merger
