Primewest (ASX:PWG) recommends merger with Centuria Capital Group (ASX:CNI)

Company News

by Adrian Tan

Property fund manager Primewest (ASX:PWG) has entered into a bid implementation deed with specialist investment manager Centuria Capital Group (ASX:CNI). Under the terms of the deed, Centuria will make an off-market takeover offer for 100 per cent of Primewest securities, subject to various conditions.

Primewest shareholders will receive $1.51 per Primewest security, consisting of $0.20 cash and 0.473 Centuria shares.

The Primewest Board of Directors unanimously recommend the merger. The merger will provide an enhanced investment proposition, including an earnings per security accretion of 19 per cent, an increase in scale and assets under management, enhanced geographic and sector diversification, and cost-saving synergies.

The merged group is expected to be well placed for S&P/ASX 200 inclusion, with an estimated market capitalisation of AU$2.2 billion.

Shares in Primewest (ASX:PWG) are trading 5.4 per cent higher at $1.54.