Rival $2.6 billion takeover bid launched for Australand

SINGAPOREAN property development giant Frasers has launched a $2.6 billion takeover for Australand.

SINGAPOREAN property development giant Frasers has launched a $2.6 billion takeover for Australand.

Frasers Centrepoint Limited is offering $4.48 per share cash per Australand security, and will also allow Australand shareholders to keep an expected 12.75-cent-per-share first-half dividend payment.

The bid trumps Australian developer Stockland's offer of 1.124 of its shares per Australand security, which carried a value of around $4.35 per Australand share and valuing the company at more than $2.5 billion.

While Frasers offer is not significantly higher in implied value, it is an all cash offer which tends to be far more attractive to investors than Stockland's mostly share-based bid.

The Frasers bid required Australand to enter into a period of exclusive due diligence, where the Singaporean company can look at its books, and the Australian company has agreed to do so for four weeks.

More on this at ABC News