Cromwell seeks link to Chinese billionaire Gordon Tang in ARA's $518m takeover bid

Cromwell seeks link to Chinese billionaire Gordon Tang in ARA's $518m takeover bid

Cromwell Property Group (ASX: CMW) is taking its defence against a hostile takeover bid to a new level as it seeks documents from Singaporean suitor ARA Asset Manager in a bid to nullify the offer.

Through its latest manouevre Cromwell aims to establish a link between the group and Chinese billionaire Gordon Tang, which ARA has denied exists. 

Backed by renowned corporate raider Gary Weiss, the takeover attempt has been described as "opportunistic" by longstanding Cromwell CEO Paul Weightman (pictured).

Brisbane-based Cromwell has more than 250 properties in its portfolio, including strategic assets housing government departments in Canberra and Qantas' (ASX: QAN) headquarters.

Two entities acting on behalf of Cromwell - Cromwell Corporation Limited and Cromwell Property Securities Limited - yesterday took an application to the Federal Court of Australia seeking preliminary discovery from three ARA-related companies, as well as Tang and individuals and entities associated with him.

"In broad terms, relying on rule 7.23 of the Federal Court Rules 2011, Cromwell seeks orders for preliminary discovery of certain documents created between 1 July 2017 and 22 June 2020," Cromwell said.

"Cromwell reasonably believes that these documents may reveal conduct suggestive of an unlawful 'association' within the meaning and for the purposes of the Corporations Act 2001 (Cth) between ARA and the Tang Group.

"Cromwell will continue to keep the market informed of further developments in respect of these matters as they arise."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Interest rates: To fix or not to fix?
Partner Content
Interest rates are on the move as evidenced by another rise issued by the Reserve Bank ...
WMS
Advertisement

Related Stories

Adore Beauty CEO Tennealle O’Shannessy tenders resignation

Adore Beauty CEO Tennealle O’Shannessy tenders resignation

Online cosmetics retailer Adore Beauty (ASX: ABY) CEO Tennealle O&r...

Mirvac fattens margins, loads up on emerging opportunities as profit hits $906m

Mirvac fattens margins, loads up on emerging opportunities as profit hits $906m

Mirvac Group (ASX: MGR) is beating the odds in the troubled residen...

Adelaide’s controversial $95m ORTA development gets green light to proceed

Adelaide’s controversial $95m ORTA development gets green light to proceed

A consortium of local developers has been given the green light to ...

GIC acquires half-stake in Charter Hall’s $1.5 billion 555 Collins Street tower

GIC acquires half-stake in Charter Hall’s $1.5 billion 555 Collins Street tower

Leading property investment management company Charter Hall has sol...