Hurdles for ANZ OnePath management contract plans
Plans by ANZ bank subsidiary OnePath to sell management contracts on two listed property trusts have run into hurdles.
Plans by ANZ bank subsidiary OnePath to sell management contracts on two listed property trusts have run into hurdles.
In one case, independent directors of the manager of Argosy Property Trust yesterday said they would not be in a position to recommend to unitholders an internalisation proposal involving the payment of $32.5 million to OnePath for termination of the management rights.
The independent directors said they had taken into account analysis carried out on their behalf by their financial advisers, First NZ Capital, along with feedback from investors.
They remained in talks with OnePath with a view to agreeing a payment that would achieve the orderly transition of management, while recognising the termination options available to unitholders, the independent directors said.
Also yesterday, Vital Healthcare Management independent directors Bill Thurston and Graeme Horsley said they were unable to recommend to unitholders a previously indicated termination payment of $14m to OnePath for Vital Healthcare Property Trust's management contract.
They were talking to OnePath with a view to agreeing a payment that would achieve the orderly transition of management, the independent directors of the trust's management company said.
A fully developed proposal to internalise the manager remained in the best interest of unitholders, the Vital management independent directors said.
They were critical of an alternative proposal from Ascot Property Management, led by former South Canterbury Finance boss Sandy Maier with investment executives David Glenn and Craig Priscott.
Ascot said its proposal would achieve internalisation of Vital's management at a cost of about $4.5m.
The Vital independent directors recommended unitholders wait for further information from them related to the current internalisation proposal, and that they take no action in response to the "opportunistic and poorly conceived communication from Ascot".
NZPA
Fri, 24 Jun 2011
Fri, 24 Jun 2011
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Hurdles for ANZ OnePath management contract plans
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