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Commonwealth Bank of Australia, the biggest lender by market value across the Tasman, plans to sell down its 8.6 percent stake in Kiwi Income Property Trust after ceding the management contract for $70.5 million.
The Australian bank has hired Goldman Sachs to sell down its units in a placement today, and trading in the local property investor has been halted to let that go ahead. At the last trading price of $1.10, CBA’s stake was worth about $95.7 million.
Investors in Kiwi Income last week approved internalising the contract in a near unanimous vote, settling the deal the following day. It was funded through the property trust’s internal debt facilities, which increased by $25 million to $875 million.
CBA floated the internalisation in July before settling on a deal last month.
(BusinessDesk)