Goodman group to buy ING trust
Goodman Group and three global investors have made a cash offer to acquire 100 per cent of the ordinary units in ING Industrial Fund after four weeks of negotiation.
The Goodman consortium -- which includes the Canadian Pension Plan Investment Board (CPPIB), Dutch pension group APG (All Pensions Group) and China Investment Corporation submitted the paperwork for the deal to the ASX last Friday.
The consortium is offering holders of units who are registered at the record date, cash consideration of $0.546 per unit on a cum distribution basis .
The adjusted price post expected distributions of $0.53 per unit represents a premium of 15 per cent to the closing price of $0.46 on 27 October 2010, the day prior to the announcement that the consortium had made an indicative proposal; and a premium of 22 percent to the six month volume weighted average price prior to 27 October 2010 of $0.436
The offer is consistent with the consortium's assessment of IIF's 31 December 2010 fair value NTA, based on independent third party valuations of the IIF portfolio and adjusted for IIF payments triggered on a change of control and sell-side costs.
The Goodman Group made a conditional offer for IIF in October, valuing the target at $1.4 billion and began due diligence in mid November.
Press reports suggested ING sought a higher price but the firms did not reveal details of the revision and Goodman promised to make a further statement "shortly."
Goodman's bid comes as pressure mounts on ING Group from regulators to offload assets to accelerate the repayment of a 10 billion euro rescue loan from the Dutch government at the peak of the European banking crisis.
With Reuters