SYDNEY , AUSTRALIA: McGrath Limited (ASX: MEA) has announced a Scheme Implementation Deed with a consortium comprising Knight Frank and Bayleys. The agreement will see the consortium acquire all shares of McGrath through a scheme of arrangement.

Shareholders of McGrath Limited are presented with a lucrative offer to receive $0.60 in cash for each share they hold, or opt for an unlisted scrip alternative, or a mix of both. Additionally, shareholders are entitled to a dividend that will not affect the scheme’s consideration, provided certain conditions are met.

The All-Cash Alternative implies McGrath’s equity value is approximately $95.5 million (on a 100% fully diluted basis).

The Board of McGrath, controlling approximately 48.1% of the company’s shares, has unanimously recommended that shareholders approve the scheme, barring any better proposals and pending the approval of an Independent Expert.

John McGrath, the Founder and CEO, has expressed his intention to opt for the scrip alternative for his shares, which account for about 23.3% of McGrath’s total shares. He will maintain his leadership role, supported by his management team, following the scheme’s implementation.

The proposed scheme is contingent on several conditions, including the approval of McGrath shareholders at an upcoming Scheme Meeting. If all conditions are met, the scheme is expected to be implemented before June 30, 2024, which would result in McGrath being delisted from the ASX.

McGrath Chair Peter Lewis highlighted the scheme as an excellent outcome for shareholders, clients, agents, and staff, offering certainty of value and the opportunity for shareholders to fully realize their investment. James Patterson, CEO of Knight Frank Australia, echoed the sentiment, expressing excitement about the future collaboration.

The proposed acquisition scheme marks a pivotal moment for McGrath Limited, promising a new chapter of growth and success under the combined expertise of Knight Frank and Bayleys.

McGrath Limited (ASX: MEA) is one of Australia’s most successful integrated real estate services business, offering agency sales, property management, mortgage broking and career training services.

Founded in 1896, Knight Frank is the world’s leading independent real estate consultancy with 604 offices across 58 territories and more than 25,000 people globally.

Bayleys is New Zealand’s largest full-service privately held real estate agency with a presence throughout New Zealand and the South Pacific, offering unmatched and comprehensive array of
property-related services and sector specific expertise which has evolved to meet changing markets and client needs.
Bayleys is the market leader in high-end residential sales across New Zealand.