Blackstone bids for IOF
The directors of Investa Listed Funds Management (ILFML), a responsible entity for Investa Office Fund (IOF), have received an all cash, unsolicited and non-binding proposal from funds managed by Blackstone Singapore or its affiliates (Blackstone) in relation to acquire IOF.
Under the terms of the proposal, Blackstone would buy IOF by way of a trust scheme.
Also, the directors of ILFML and Quartz Holding, an affiliate of Blackstone funds, entered a process deed which would set out the terms required to finalise the proposal.
According to the proposal, which remained subject to a number of conditions, IOF unitholders would be entitled to $5.25 cash per unit reduced by any distributions declared or paid by IOF after May 4, 2018 and prior to completion of the proposal.
The firm said that the distribution adjusted proposal price of $5.15 represented a 13.2 per cent premium to IOF’s ex-distribution closing price of $4.55 per unit on May 25, 16 per cent premium to one month weighted average unit price of IOF of $4.44 per unit up to 25 May and a four per cent premium to an initial non-binding and confidential proposal by Blackstone made on April 5.
The ILFML directors stated that they would unanimously recommend IOF unitholders to vote in favour of the proposal and they believed it was in their best interests, in the absence of a superior proposal.
According to them, the proposal presented an opportunity to realise their investment and would add “significant value and certainty”.
Following the successful finalisation of the proposal, the two companies would enter a binding scheme implementation agreement and ILFML would obtain updated independent valuations for the entire IOF portfolio.
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