Thakral Holdings (THG) says a $400 million takeover offer from private equity group Brookfield undervalues the Australian property company.

Canadian-based Brookfield said on April 19 that it proposed to make a takeover bid for Thakral, offering 70 cents per security.

Brookfield said the offer represented a 30.8 per cent premium to Thakral’s closing price of 53.5 cents on the Australian Securities Exchange (ASX) the day before the bid was announced.

On Tuesday, Thakral chief operating officer Anthony Story said the Brookfield offer undervalued Thakral.

He said the company had a net tangible asset backing per security of 96 cents as at December 31 2011.

Mr Story said Thakral’s board of directors would commission an expert report on the Brookfield offer once it received a bidder’s statement from the private equity group, but it expected the offer would be rejected.

“Subject to considering the views of the independent expert, the independent directors expect they will recommend in THG’s target statement that THG securityholders reject the Brookfield offer,” Mr Story said in a statement.

Meanwhile, shareholders were advised not to take any action in relation to the bid.

Brookfield said on April 19 that its offer was being made without the benefit of detailed due diligence or negotiations with independent directors of Thakral regarding the terms on which the independent directors would recommend the offer to securityholders.

Brookfield already owns construction firm Multiplex, which it purchased for $7.3 billion in 2007 via an on-market takeover.

Thakral is a property investment company that has an interest in hotels, retail and commercial properties.

It is also involved in the sale and development of land and buildings including the Wynyard complex in Sydney that includes the landmark Menzies Hotel.

Its other property interests include the Sofitel Brisbane Central and Novotel Brighton Le Sands in Sydney.

Thakral’s shares closed 0.5 per cent lower at 76 cents on Tuesday.