AMP Properties wins battle for Capital

AMP Property Portfolio (APP) has won its battle for control of Capital Properties, having reached its minimum acceptance level of 50 per cent of the shares.

Late yesterday APP announced it had 51.84 per cent, just over two days before the offer was to close. It caps a two-month $300 million bid to wrest control of the Wellington commercial property investor.

APP is paying $1.48 a share plus brokerage fees.

General manager Stephen Costley said the bid had been gaining momentum in the past week and he was confident of receiving more acceptances.

Now that it has reached its minimum level, APP has the option of extending the bid by up to 60 days to try to reach 90 per cent of acceptances. Last night it said no decision had been made.

If it reaches 100 per cent, APP will eventually delist Capital Properties and absorb it into its own portfolio.

APP first made an offer in mid-September of $1.42 a share. The market response was muted till APP snared the largest shareholder, Kiwi Income Property Trust, with a raised $1.48 offer.

After Kiwi Income's 19.2 per cent was added to APP's original 15.4 per cent, acquired early this year, the bid began to get a head of steam. Despite failing to gain the support of the independent directors, APP forged ahead, taking out advertisements backing its offer.

Mr Costley has said that if a takeover was successful, APP would conduct a strategic review of Capital Properties' operations. This may include looking at the capital structure of the company, its dividend policy and whether to sell some of its properties. The existing management is likely to be maintained in the meantime.

APP is a privately held diversified property investor, with $600 million of property.

- nzpa