Mr Salwin: value for money accommodation

Company now has clear, singular focus

Aspen amalgamation
'major step forward'

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ASPEN Group will merge with Aspen Parks Property Fund to become one of largest accommodation park owners and operators in Australia.

The ASX-listed company announced the news nearly a year after the property fund (APPF) rejected a $217m acquisition offer from Adelaide-based Discovery Holiday Parks.

Group chief executive Clem Salwin described the merger as a "major step forward".

Unlisted APPF ‒ managed by the Aspen Group ‒ has about 3000 investors and 21 properties, including caravan and tourist parks, valued at nearly $200 million.

"This transaction completes Aspen Group's strategic change of the last few years," Mr Salwin explained.

"The business now has a clear, singular focus ... owning, managing and developing value for money accommodation.

"The merged group will be one of the market leaders."

Mr Salwin said it would have one of the largest portfolios in the industry, with more than 5000 sites nationwide.

The merged company's market would provide accommodation for the resources industry, retirees, annual tourists and short-stay travellers who utilise cabins and caravan sites.

Group shareholders will receive one share in the merged company for every one already owned, with APPF shareholders receiving 0.386 for each one they own.

APPF shareholders also have the option to take advantage of a 52c a share buy-back facility, subject to a $35m ceiling.

Announcing a statutory loss of $31.7 million during the last financial year, Aspen Group said it was now moving towards providing "pure play" accommodation.

The loss had been largely due to devaluating its resources properties, it explained.

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