SYDNEY, Dec 11 (Reuters) - Australia’s Dexus Property Group and a Canadian pension fund have hiked their joint bid for Commonwealth Property Office Fund to challenge a rival offer, valuing the trust at A$3 billion ($2.7 billion).
The new bid, which is not subject to a minimum acceptance condition, comes two weeks after CPA terminated its deal with Dexus and the Canada Pension Plan Investment Board in favour of property investor GPT Group.
GPT’s biggest shareholder is Singaporean sovereign wealth fund GIC Private Limited.
Dexus and the Canadian fund are now offering a cash payment of A$0.7745 and 0.4516 Dexus securities, valuing each CPA unit at A$1.27 based on Dexus’ closing price on Tuesday and representing a 2.6 percent premium to GPT’s offer, Dexus said in a statement.
By comparison, GPT is offering A$0.75325 in cash and 0.141 GPT security for each CPA unit.
GPT and CPA were not immediately available for comment.
$1 = 1.0939 Australian dollars Reporting by Maggie Lu Yueyang; Editing by Edwina Gibbs