Australian Valad Property To Acquire UK-based Scarborough For Enterprise Value Of A$2 Bln.

Australian Valad Property To Acquire UK-based Scarborough For Enterprise Value Of A$2 Bln. - Update []

6/24/2007 10:13:25 PM Monday, Australia-based property funds management company Valad Property (ASX.VPG) announced it would acquire the privately held Scarborough for an enterprise value of A$2 billion. Scarborough has considerable direct property ownership, funds management and development operations in the United Kingdom.

To fund the acquisition, Valad said it would raise A$1.2 billion through the issue of new securities under three for four non-renounceable entitlement offer. The new securities will have an application price of A$1.92, which is a discount of 7.7% to the VWAP, adjusted for the June distribution of 5.67 cents.

Valad's executive chairman Stephen Day, said the acquisition would permit Valad leverage its business model into the UK and European property markets through a highly successful business, which employs over 250 property professionals in 16 offices across 11 countries.

The acquisition builds on Valad's international expansion headed by Peter Hurley, the group's Executive Director and Global Transactions. He will move to London to take charge of the company's expanded European operations. He is also expected to join the Scarborough boards including that of pan-European funds management company Teesland Plc, which is 72.3% owned by Scarborough. Teesland will remain listed on the London Stock Exchange.

The combined group will employ nearly 400 professionals directing property funds and investments across the property risk/return spectrum in 15 countries.

On consummation, Valad's market capitalization based on the issue price will increase to about A$2.8 billion. Valad's assets under management will increase to A$16.8 billion from A$6.6 billion with the inclusion of Scarborough's operations that consist of a diversified UK and European property portfolio of 89 properties, a 72.3% interest in a listed UK and European real estate funds management business.

Valad said Mr. McCabe, who is Scarborough's largest shareholder and also chairman of Sheffield United Plc, would join the Valad's board of directors. The vendors of Scarborough will invest A$140 million of their consideration in Valad and further key Scarborough management will make a A$10 million investment in Valad. Stephen Day and Peter Hurley, in aggregate, will subscribe for A$9 million in new securities.

JP Morgan advises Valad. JP Morgan, Macquarie Bank and UBS are joint book runners and underwriters and Citigroup is comanagers.




Connect Holdings Reveals Completion Of Cash Offer For Pacific Internet [PCNTF]

6/24/2007 9:35:50 PM Connect Holdings Ltd. said that its voluntary conditional cash general offer to acquire all the issued shares of Singapore-based Pacific Internet Ltd. or Pacnet (PCNTF) for US$11.00 net in cash per share, without interest, was declared unconditional in all respects and successfully closed on 22 June 2007.

The company said that the depositary for the offer advised it that as of 22 June 2007, 7.21 million shares, representing approximately 52.01% of the issued shares of PacNet were validly tendered in and not withdrawn from the offer. Further, the company said that all validly tendered shares were accepted for payment, and added that payment would be made promptly in accordance with the terms of the offer.