Lend Lease halves BBC offer
The property developer has re-assessed its offer for Babcock & Brown Communities.
Property Developer Lend Lease has halved its offer for a 12.5 per cent share of aged care provider Babcock & Brown Communities (BBC).
After completing due diligence and negotiations, Lend Lease reduced its buying price from 58 to 29 cents per share.
If the amended deal is approved by shareholders, Lend Lease will acquire a 43.2 per cent stake in BBC.
Other changes to the original offer include a reduced price for the $170 million placement component form 68 to 60 cents per share, and an extra $25 million cash injection from Lend Lease into BBC.
The company said its overall cash outlay would remain the same.
“The Babcock & Brown Communities transaction is progressing well and we look forward to their security-holder vote in December,” said the company’s CEO, Greg Clarke.
“As previously stated, we believe the retirement sector provides a number of strategic benefits for Lend Lease and this transaction provides us with management of, and investment in, one of Australia’s leading pure play operators.”
As part of the arrangement, BBC will acquire a number of Retirement by Design villages for $133.4 million, if its shareholders give approval.
