Australand 'no' to Stockland's stake proposal

[SYDNEY] Australia's Australand Property Group said yesterday it had rejected a A$1.95 billion (S$2.27 billion) proposal from bigger rival Stockland Group to increase its stake, saying the deal was undervalued.

Australand has been seen as a takeover target since Singapore's CapitaLand Ltd said it wanted to sell what was a 59 per cent stake in early 2013, while Stockland has been seen as a likely buyer of some or all of the business.

Stockland bought a 19.9 per cent stake in Australand in March after CapitaLand sold its remaining 39.1 per cent stake in Australand for about A$849 million.