Australian Unity moves to address investor confusion regarding merger deal.
Australian Unity Investments (AUI) has moved to allay investor concerns about one of its property trusts after incorrect information regarding its merger deal was circulated.
Investors in the Wyong Syndicate will meet in late February to discuss AUI's decision to merge five property trusts and syndicates into a $400 million retail property fund.
"This follows one investor having circulated materially incorrect information regarding the proposal, and subsequent confusion with investors," AUI general manager of retail Adam Coughlan said.
"To remedy this situation, Australian Unity is preparing additional information for investors and will organise several briefing sessions over the next couple of months."
According to newspaper reports, the investor was concerned about the likely impact of the merger on the syndicate's performance.
"Australian Unity has developed the proposal, which is expected to deliver investors a total return of around 14.5 per cent per annum and to provide investors more flexibility in accessing their investment, greater diversity and lower risk," Coughlan said.
Investors in the Retail Property Trust, the Regional Retail Property Investment and East West Property Syndicate have all endorsed the proposal.
Support from investors in the Sunshine Homemaker Centre Property Trust has been strong, according to Coughlan.
He said their vote is scheduled for December 18, following requests from investors and advisers for more time to consider the proposal and to send their proxy forms.
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