The only pure-play over 55s rental accommodation provider is fighting hard against a takeover bid from fellow listed operator Aspen.
On 6 March, Eureka informed the ASX that Filetron Pty Ltd had bought 28,968,833 shares, which represents over $15.6 million, for a 9.62% stake in the business. Then on Friday, 8 March, Filetron increased its stake to 13.64%.
Filetron belongs to Ben Cottle (pictured), Founder and Non-Executive Chairman of construction and fitout business FDC Group. Cottle was an investor in Eureka Director Greg Paramor’s Folkestone operation, which he set up after leaving Mirvac. Folkestone was bought in a $205 million cash deal by Charter Hall in February 2019 and Paramor remains active through his Leftfield Investments, which is involved in property debt.
Aspen, which provides accommodation in residential communities, retirement villages and holiday parks, increased its stake to 13.64%, also on 8 March. It is now Eureka's second biggest shareholder behind Cooper Investments’ 22.08%.
Aspen has offered a merger of 0.26 Aspen securities per Eureka share on 23 January 2024. It lodged its proposed bid on Eureka on Friday, 8 March.
Eureka, in its 1H24 Financial Result, said the proposed bid meant Aspen valued Eureka shares at 0.44. On Monday morning Eureka shares traded at 0.55, which represented a 20% rise in its stocks in the past month.
Eureka, which has appointed an Independent Expert to assess Aspen's takeover plan and will report to shareholders when the expert's report is complete, has called the Aspen bid inadequate and undervalues the business.
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