17 May 2011
NZX Announcement and Media release
Argosy Property Management Limited – Letter From DNZ Property Fund Limited
The Independent Directors of Argosy Property Management Limited (Trevor Scott and Peter Brook) have received a further
communication from DNZ Property Fund Limited broadly outlining how a merger between Argosy Property Trust and DNZ could
be achieved. We note that at this point the letter is indicative and non-binding, but envisages DNZ as the acquiring
entity.
The Independent Directors are focused on achieving the best value enhancing options for Argosy unitholders. First NZ
Capital and Harmos Horton Lusk continue to assist in the process of evaluating the internalisation proposal, the DNZ
approach and any other proposals. The Independent Directors have communicated with DNZ in these terms.
The Independent Directors wish to carefully evaluate the potential of any merger and, in particular, how the properties
owned by DNZ could be integrated into a combined portfolio, tax, gearing, distribution and other relevant matters.
The central focus, however, remains on the strategic initiative to internalise the management contract in the most
effective and timely manner. The Independent Directors consider that internalising the management contract is likely to
create the greatest value and strongest position for Argosy unitholders from which to consider all proposals, including
that outlined by DNZ.
The Independent Directors have reason to believe that OnePath, the owner of Argosy Property Management, did receive
competing, and potentially higher value indications of interest for the management contract but chose to work with the
Independent Directors on a proposal that is likely to achieve the most favourable outcome for unitholders. To that end
the Independent Directors obtained advice from Harmos Horton Lusk and First NZ Capital on the terms of the management
contract and the optimum strategy for acquiring it.
As previously notified, Grant Samuel & Associates has been appointed to prepare an independent report on the merits of the internalisation proposal for the
benefit of the Independent Directors, unitholders and the Trustee.
This will be sent to unitholders along with further details and a notice of meeting in due course.
ENDS