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May 01, 2023


Part 1

Question 1

Overview Of Acquisition

In this exercise, Growthpoint Properties is the acquirer, while Rabinov Property Trust is the target firm for the purpose of assessing stock price performance after a merger and acquisition arrangement. Rabinov property trust is a small Real Estate Investment Trust which owns and manages a small group of commercial properties which include offices, industrial properties and others. Growthpoint properties Australia is an REIT which invests and owns properties across Australia which includes Official And Industrial Properties of high quality. The ticker of Growthpoint properties which is the acquirer is ASX:GOZ whereas the ticker symbol of Rabinov Property Trust which is the target firm is ASX: RBV. Growthpoint is a South Africa based company which also has its units in Australia and on 13th of April 2011, the South African parent group of Growthpoint announced that the Australian unit of the company is willing to buy all the units floated by Rabinov Properties. The company has agreed to buy all the units of Rabinov at 0.48 GOZ stapled securities and would be further made an extra payment of 2.3 per cent of Rabinov units as special distribution payment. The offer price stood at $0.95 per share of Rabinov Properties which was already at a premium of 41% compared to the prevailing market price of the units.

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