Cromwell Property Group (ASX: CMW) has walked away from its planned takeover of UK based RDI REIT PLC. Cromwell had previously announced that it was in talks to acquire RDI and had undertaken due diligence and submitted a conditional proposal to RDI which the Board of RDI considered as being “undervalue” for the company. RDI subsequently ceased further due diligence for Cromwell and Cromwell announced that it will no longer be proceeding with a takeover proposal.
RDI controls about 1.6B pounds (or A$2.92B) of funds under management in the UK and Germany. For the moment Cromwell remains focused on its Ïnvest to Manage strategy and will continue to look at growth options in Australia, Asia and Europe. In the short-term UK takeover rules state that Cromwell cannot make another offer for RDI for six months, or at the invitation of RDI’s Board, after three months.