The takeover battle for affordable accommodation provider Eureka Group is heating up with Ben Cottle, founder and major shareholder of the FDC Group, emerging with a 9.62 per cent stake in the company via his Filetron unit and broker Ord Minnett still in the market chasing stock.
Cottle is one of the best-known figures in the property sector industry and his stake could stymie plans by property fund Aspen Group to create a $500m affordable housing company by taking over Eureka.
Cottle has grown FDC into one of the top private developers and builders, and he was an investor in Greg Paramor’s Folkestone operation, which he set up after leaving Mirvac.
That business was acquired by Charter Hall but Paramor remains active via his Leftfield Investments business, which is involved in property debt.
The emergence of a cashed-up shareholder in Eureka changes the dynamic for Aspen’s nil-premium scrip takeover bid.
Cottle could up his stake to 10 per cent to prevent a compulsory acquisition and Aspen now appears to have little chance of getting full control of Eureka without hiking its offer.
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