ACCC delays findings of proposed Lendlease communities sale to Stockland, Supalai
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The news: The competitions regulator has given Lendlease a new provisional date of 4 July for the release of its findings on the proposed sale of 12 residential communities to Stockland Corporation and its capital partner Supalai Residential Communities Partnership.
The numbers: The communities are to be sold for $1.3 billion and cannot be completed until the Australian Competition and Consumer Commission (ACCC) findings are issued.
Lendlease shares were 0.34% lower in early trading following the announcement that was issued late on Friday.
The findings date was originally set for 18 April but was delayed after the ACCC requested further information from the parties which it received on 31 May.
Lendlease estimates that if completion of the sale does not occur in FY24, it would have a 2% impact on return to equity, with core operation profit after tax reducing to about $305 million from $450 million. This would push an estimated $130 million to $160 million in sales profits into the next financial year.
The context: The new earnings projections also rely on the completion of a number of other sales, including Lendlease's Asia life sciences assets.
The sale to Supalai under its partnership with Stockland, one of Australia’s largest residential developers, includes properties across the national market. Lendlease said that the sale was initiated as it aimed to reweigh capital to investments, reduce gearing and realise the value created in the projects.
Lendlease is also set to undertake further restructuring with the sale of $4 billion in overseas assets over the next three years.
The sources: ASX Announcement, ASX Announcement
