An independent expert’s report commissioned by Aspen Group has concluded that its takeover of the Aspen Parks Property Fund is fair and reasonable and superior to a competing proposal.
Aspen, which already owns 42 per cent of the parks fund, recently lifted its scrip offer to 0.42857 shares for each unit in the fund.
Its offer values APPF units at between 60 cents and 62 cents.
Aspen Group has also given the shareholders the option to cash out, at 60 cents per share, subject to an overall cap of $40.5 million.
At 60 cents per share, the total value of APPF securities, including the stake owned by Aspen Group, would be $139 million.
Discovery Holiday Parks has put a competing proposal to APPF unit holders, pitched at 58 cents cash per APPF unit, valuing the target at $135 million.
The independent expert’s report from KPMG Corporate Finance concluded that Aspen’s revised proposal was fair and reasonable, and in the best interests of Aspen and APPF securityholders.
It put a value on the merged group of $1.30 to $1.40 per security, implying a value of 56 cents to 60 cents per APPF security.
Aspen chairman Frank Zipfinger said the board was pleased to get a report that supported its strong view.
“The revised proposal is a compelling and unique opportunity that completes Aspen Group’s strategic simplification while providing APPF securityholders a superior value outcome,” he said.
“Importantly it provides APPF securityholders the ability to participate bin the potential upside in the merged group.”
The merged group will own and manage 26 accommodation properties comprising 5,000 sites, valued at $250 million.
The majority of these – 21 properties worth $189 million – are owned by APPF while the balance are owned by Aspen.