Lend Lease, GPT Merger Clears Legal Hurdle

SYDNEY-The merger of Lend Lease Corp Ltd. and General Property Trust cleared a legal hurdle last week when the NSW Supreme Court signed off on the merger plans and authorized further merger meetings and the mailing of explanatory material to shareholders, who have not yet voted on the proposal. The merger, announced in August, would create an $11 billion real estate investment behemoth.The merger plan is for a stapling of Lend Lease shares and GPT units at a ratio of one Lend Lease share to every 3.8 GPT units. Security holders are expected to vote on the plan in mid-November. The merged entity would target an earnings mix of 70% from property investment and 30% from development and management. Lend Lease on Friday closed at $11.65 per share, off $0.07 on the day. GPT units ended the day unchanged at $3.70. Lend Lease shares are up about 11.5% since Lend Lease’s bid was recommended for approval by GPT directors three months ago. GPT units are up about 6% over the same time period.