Aspen, which provides accommodation in residential communities, retirement villages and holiday parks, is now the biggest shareholder in the nation's only pure-play over 50s rental accommodation provider.
Within 24 hours of it lodging its off-market takeover bid, Aspen markedly increased its stake in Eureka, with the likely purchase of fund manager Peter Cooper's Cooper Investments’ 22% stake, the previous biggest shareholder.
Aspen offered a merger of 0.26 Aspen securities per Eureka share on 23 January 2024. Eureka, in its 1H24 Financial Result, said the proposed bid meant Aspen valued Eureka shares at 0.44. As of this morning, Eureka shares traded at 0.53.
Eureka said last Friday that increased investment in the listed business by Ben Cottle's Filetron to 19.29% means "Aspen will not be able to achieve the 90% threshold needed to compulsorily acquire all other Eureka shares not held by Aspen."
"Furthermore, scrip-for-scrip rollover relief is only available if Aspen becomes the owner of at least 80% of all Eureka shares. The 19.29% held by Filetron makes it highly unlikely that Aspen will meet the 80% threshold," Eureka stated.
Eureka owns 52 Over 50s rental retirement villages with more than 2,800 units owned or managed.
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