Proposal to Merge DNZ and Argosy

Proposal to Merge DNZ and Argosy

Proposal to Merge DNZ and Argosy 18/05/2011

Following DNZ’s announcement on 11 May 2011 stating that it had approached Argosy to discuss a proposed strategic merger, DNZ submitted a written proposal to the Independent Directors of Argosy last week.

Argosy has yesterday acknowledged receipt of the proposal in a release to the market and has stated that “the Independent Directors wish to carefully evaluate the potential of any merger.”

Following Argosy’s announcement DNZ is still attempting to constructively engage with the Independent Directors to provide them with further information to assist them with their evaluation of the proposal. The DNZ Board believes this information and constructive discussion will be critical in undertaking a credible evaluation of the merits of the merger proposal.

DNZ believes this is a one-off opportunity to extract the maximum benefits from combining these businesses and it is critical that Argosy considers this proposal now, rather than defer it and proceed with its proposed internalisation. There are significant costs Argosy is about to incur to set up the new internal management arrangement, including the payment to ANZ. DNZ believes the merger proposal would not be as attractive to Argosy unitholders if it did not happen as part of an exit of the external management arrangement, as material value benefits would be lost forever.

The attached presentation outlines the key elements of the written proposal provided to the Independent Directors of Argosy, in addition to further detail to assist with the evaluation of the proposal.

Attachments provided to NZX:
1. DNZ and Argosy Merger Proposal Overview – 18 May 2011


For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email:

DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with commercial office, retail and industrial properties located in Whangarei, Auckland, Tauranga, Hamilton, Rotorua, Palmerston North, Napier, Wellington, Nelson, Christchurch and Dunedin.

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internalised management team. DNZ Property Fund Limited also manages the property portfolio of Diversified NZ Property Fund Limited, which is owned by Australian institutional investors.

DNZ Delivers a Solid Result in 2011
DNZ Letter to Shareholders Regarding Argosy Merger Proposal