June 15, 2020 / 12:34 AM / 25 days ago

Australia's Centuria back with a second bid for NZ's Augusta Capital

June 15 (Reuters) - 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.

$1 = 1.5567 New Zealand dollars Reporting by Sameer Manekar in Bengaluru; Editing by Christopher Cushing

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