$8m is OnePath's lowest offer
Listed Vital Healthcare's management owner, OnePath, won't take less than $8 million to internalise management
OnePath, the owner of the external manager of the listed Vital Healthcare Property Trust, won’t accept less than $8 million to internalise the management.
OnePath director John Body issued a media statement that said negotiations had broken down with the independent directors of the management company.
The $8 million is a considerable discount on the $14 million that OnePath was originally seeking.
The next move to forcibly oust the manager is likely only as a result of legal action by unitholders or the trustee, acting on OnePath’s implicit admission that external management is not the optimum structure for the trust.
OnePath has never explained the financial rationale for either figure.
“Any internalisation deal needs to reflect both the inherent commercial value of the management contract and the benefits to unitholders from a seamless transition to an internalised management structure,” according to Mr Body.
He maintained his argument that an agreement with OnePath was the only way for Vital to achieve an orderly internalisation that would install the same management team but employed directly by the trust.
Mr Body claimed that OnePath was approached by the independent directors over the plan to internalise the management.
Chris Hutching
Thu, 28 Jul 2011
Thu, 28 Jul 2011
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$8m is OnePath's lowest offer
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