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Centuria Capital Group (Centuria) notes the attached market release by Augusta Capital Limited (Augusta) regarding the deferral of the planned March 2020 launch of its Tourism Fund and Augusta’s profit expectations for the NZ financial year ending 31 March 2020.
Centuria understands the deferral is partly in response to the temporary impact of the coronavirus on the global tourism sector and Centuria views the deferral as both sensible and appropriate. In addition, as the Centuria takeover offer will not close until after 31 March 2020 (Augusta’s FY20 financial year end), the focus of Centuria’s assessment of Augusta’s ongoing potential has always been on Augusta’s FY21 performance and beyond.
Assuming the offer is successful, Centuria is likely to receive the benefit of substantial property acquisition and other associated fees from the launch of the Tourism Fund, increasing the year one profit potential Centuria had originally modelled.
Accordingly, Centuria remains committed to its takeover offer for Augusta and Centuria and Augusta are working co-operatively to provide the takeover proposal to Augusta shareholders in accordance with the timetable set out in the Bid Implementation Agreement.