FPP's strategic decision on merger proposal

Fat Prophets Global Property Fund (ASX:FPP) has received an unsolicited merger proposal from Lanyon Asset Management Pty Limited. The proposal, which was incomplete and non-binding, was evaluated by FPP's investment manager, Fat Prophets Funds Management Pty Limited. The manager concluded that the proposal was unlikely to be deemed 'fair and reasonable' for FPP unitholders.

FPP's future strategy and outlook

Fat Prophets Global Property Fund (ASX:FPP) has decisively rejected a merger proposal from Lanyon Asset Management, citing it as unfair and misaligned with FPP's strategic goals. The investment manager's assessment reflects FPP's commitment to ensuring any proposals brought forward are in the best interest of its unitholders. Despite past attempts by Lanyon to alter the management structure or strategy of FPP, the fund remains focused on its current investment approach. This includes maintaining a value-biased strategy with diverse investments in developed market REITs, aiming for capital growth and income distribution. FPP's future outlook suggests a continued emphasis on strategic alignment and robust governance to support its long-term objectives.

Executive insights on merger proposal

The investment manager of FPP, Fat Prophets Funds Management Pty Limited, determined that the proposal was unlikely to be considered fair and reasonable for FPP unitholders by an independent expert. Several reasons were cited for this assessment, including the proposal not providing fair value, unreasonable fees, lack of compelling reasons to present it to unitholders, and misalignment in investment strategy. Additionally, Lanyon has previously attempted to engage with the investment manager to wind up or acquire its management rights and even requisitioned an extraordinary general meeting in 2022 to remove the investment manager, which was not approved by FPP investors.