Caledonia Investments takeover bid for ALE pub portfolio languishes

Caledonia Investments takeover bid for ALE pub portfolio languishes
Caledonia Investments takeover bid for ALE pub portfolio languishes

Caledonia Investments seems set to walk away from its ­hostile takeover bid for ALE Property Group, owner of a $900 million pub portfolio.

The largest investor in ALE Property lobbed its $770-million all-cash takeover offer in October.

But the Australian Financial Review's authoritative Street Talk column says Caledonia is expected to formally withdraw after prolonged talks with the company failed to strike a deal on the offer at a 74% premium to ALE's net tangible asset value.

ALE owns a $900 million portfolio of 86 pubs which are operated by ALH, a joint venture between Woolworths and Bruce Mathieson.

Woolworths is ALE's second largest shareholder with around an 8% stake.

Led by Mark Nelson, the Sydney-based private investment group holds around 26% of ALE, which engaged Macquarie Capital for its defence.

Caledonia, which hired Moelis & Company, was set up in 1992 to manage the fortunes of the Darling family and later adding the Nelson and Vicars families.

It has $2.8 billion under management.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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