Commonwealth Bank of Australia to accept Dexus-led bid for office fund CPA
SYDNEY Dec 18 (Reuters) - Commonwealth Bank of Australia (CBA) on Wednesday said it will accept an offer from Dexus Property Group and the Canada Pension Plan Investment Board (CPPIB) to buy Commonwealth Property Office Fund (CPA) for $2.7 billion.
The fund, which owns 26 office buildings in major business districts, is the target of a bidding war between the Dexus-led consortium and rival property investor The GPT Group, as they seek more Australian office real estate because it promises high yields.
Dexus and CPPIB's latest cash and stock offer, announced on Dec. 11, values the fund at A$3 billion ($2.7 billion), 2.6 percent more than a bid from GPT. The value of the bids fluctuate according to the share prices of Dexus and GPT.
Commonwealth Bank, which has a 7.8 percent holding in the fund, said it would accept the Dexus offer.
"CBA Group currently intends to accept the Dexus Offer in respect of those proprietary holdings," Australia's largest bank said in a stock exchange filing.
The bank intends to do so "provided that such acceptance would take the consortium's relevant interests in CPA to at least 50.1 percent and the Dexus Offer is otherwise unconditional." (Reporting by Maggie Lu Yueyang; Editing by Christopher Cushing)