AMP extends Capital Properties offer

AMP Property Portfolio announced last night it is extending its offer of $1.48 cash per share for all of the ordinary shares in Capital Properties, by nine days.

The offer, which was due to close yesterday, will now close at 11.59pm on Friday, November 25, but could be further extended, the company said in a statement late last night.

AMP Property Portfolio now holds or controls 67.8 per cent of the voting rights in Capital Properties.

"We're delighted with the acceptance level to date. This nine-day offer extension gives remaining shareholders the opportunity to receive a very full and fair price for their shares in Capital Properties under the offer," AMP Property Portfolio general manager Stephen Costley said.

"As we have stated previously, Capital Properties will be a very different company going forward.

"We will support the board in conducting a rigorous review of the existing assets, operations, policies and capital structure of Capital Properties. This will include reassessing the dividend policy," he said.

"Our view remains that shareholders will achieve a higher value outcome if they sell their shares in Capital Properties than if they hold them."

The offer is now unconditional in all respects.

AMP Property, an unlisted fund managed by AMP Capital, now has over $1 billion worth of assets under management.

Capital Properties has $585.6 million in real estate assets, and is the only listed blue-chip property investor specialising in Government office space -- a factor which enhances its attraction for AMP Property, but could also see some small investors elect to go along for the ride.

AMP Property also controls over $500 million of shopping centres, including half of Auckland's Botany Town Centre, Lynnmall Shopping Centre and Manukau Supa Centa.

A company spokeswoman said AMP Property was eager to accept other shares offered, despite achieving its initial goal of 50 per cent.

"Everything north of 50 per cent is good and we will take what we get," she said. If AMP gets to 90 per cent, it will compulsorily acquire the remainder.

On the market, Capital Properties shares closed 1c up at $1.47 yesterday, 1c below the offer price.

- nzpa