Charter Hall Group, a Sydney-based property development and investment firm with more than A$23 billion ($16.8 billion) in assets under management, will acquire Sydney-based Folkestone, a property development and investment firm with AUM of A$1.6 billion, for A$205 million, the two Australia Stock Exchange-listed firms announced Wednesday.
The proposed A$1.39 per share offer price to Folkestone shareholders represents a 25% premium to the previous close of A$1.11 per share, and a multiple of 10.2 times the firm's earnings before interest, taxes, depreciation and amortization.
The two firms said, assuming necessary approvals can be obtained, the transaction could be completed by early November.
A Charter Hall spokesman said Greg Paramor, Folkestone's managing director, will join the Charter Hall board as an independent non-executive director, while Scott Martin, Folkestone's chief financial officer and company secretary, and Adrian Harrington, the firm's head of funds management, will join in their current capacities.
"We look forward to Folkestone executives joining Charter Hall and the complementary skills they will bring as we work together to grow the funds management platform," said David Harrision, Charter Hall Group CEO and managing director, in a news release.