Centuria Capital (ASX:CNI) share price rises as merger edges closer

The Centuria Capital Group (ASX: CNI) share price was on the rise today as the company’s takeover of Primewest comes closer to fruition.

| More on:
Man drawing illustration of a big fish eating a little fish representing a takeover or acquisition.

Image source: Getty Images

The Centuria Capital Group (ASX: CNI) share price was rising today. The company came into focus after its takeover of Primewest Group Ltd (ASX: PWG) came one step closer to fruition.

By the market’s close, shares in the real estate funds manager were trading at $2.71 each – up 1.5%. Similarly, Primewest shares were up 2.07% to $1.48. For comparison, the S&P/ASX 200 Index (ASX: XJO) closed the day 0.57% higher.

Let’s take a closer look at today’s news.


Back in April, Centuria first submitted an offer to buy its fellow real estate fund manager for an implied price of $1.51. The offer consisted of 20 cents in cash and 0.473 in Centuria securities for every share in Primewest. At the time, the proposed offer of Centuria shares was worth $1.31. At today’s valuation, it is now worth approximately $1.29 – for a total price of $1.49 now. This is still one cent above the current Primewest share price.

The deal was practically done from the moment it was announced. Primewest directors said they planned to vote unanimously in favour of the deal and, since they own 53% of all shares in the company, had a majority vote.

Latest takeover news

 In its statement to the ASX, Primewest says it is recommending shareholders accept the deal for 100% of its shares. The company gave the following reasons as to why:

  • An “attractive premium” of 3.1% based on the closing price of Primewest and Centuria on 16 April, and an 11.8% premium based on an average 30-day price of the two companies.
  • A 60.9% shareholder return for Primewest owners.
  • A 19% appreciation in earnings per share in the merged company compared to Primewest alone.
  • Greater diversification of assets and greater relevance in its assets under management.
  • A stronger likelihood of being placed in the S&P/ASX 200 Index (ASX: XJO). The new company will have an estimated market capitalisation of $2.2 billion.

In its own statement, Centuria gave similar reasons to Primewest shareholders as to why they should accept the offer.

Today’s statement takes Centuria one step closer to acquiring Primewest. 

Centuria Capital share price snapshot

Over the past 12 months, the Centuria share price has increased by 85.9%. Its value crashed to around $1.40 at the height of the COVID market crash before recovering to levels seen just before the pandemic.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Real Estate Shares

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Real Estate Shares

Goodman share price charges higher on Q3 update and guidance upgrade

Goodman shares are storming higher on Monday morning. Here's why...

Read more »

A man sits at a desk holding a small replica house in his hand, upset at the sale of his property.
Real Estate Shares

Feel the squeeze: 3 ASX property shares with a whole lot of debt

When it comes to debt, it's the more the not-so merrier...

Read more »

two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.
Real Estate Shares

E-commerce is booming. Which ASX shares have exposure to warehouses?

Those products aren't going to store themselves...

Read more »

Rising real estate share price with a yellow arrow.
Real Estate Shares

This ASX All Ords share is bucking the sell-off to near all-time highs

One real estate player is outstripping the bunch.

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Wilson Asset Management's two ASX share picks in its WAM Research portfolio
Real Estate Shares

Here’s why the Brickworks (ASX:BKW) share price has loads of growth potential: expert

Brickworks shares have plenty of growth potential according to Ord Minnett.

Read more »

Houses with red declining arrow.
Earnings Results

Lendlease (ASX:LLC) share price tumbles on ‘reset year’ results

COVID-19 restrictions have hit construction projects across the world.

Read more »

A group of men in the office celebrate after winning big.
Real Estate Shares

Return to the office: Did this decision help boost ASX 200 property shares today?

Workers in NSW have been given the nod to head back to the office, with Victoria set to follow suit.

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Real Estate Shares

Merci! Here’s what’s driving the Unibail (ASX:URW) share price 7% higher today

The real estate company's shares are soaring. Here's why.

Read more »