Charter Hall Group's consortium with Abacus Property Group entered into an agreement with the responsible entity for Australian Unity Office Fund to purchase all the units it does not yet own in the office-focused real estate investment trust at A$3.04 apiece.
The takeover offer values the target at A$495.0 million and represents a 9.4% premium to Australian Unity Office's A$2.78-per-unit closing price June 3, as well as a 9.0% premium to the REIT's A$2.79 net tangible asset per unit as of June 30.
The signing of the deal follows the consortium's nonexclusive due diligence on Australian Unity Office, which commenced in July after the parties entered into a confidentiality deed in relation to the buyout bid.
Australian Unity Investment Real Estate Ltd. noted in a news release that it unanimously recommends the proposal in the absence of a superior offer.
Implementation of the scheme is expected later in November, subject to various conditions including the approval of a majority of the target's unit holders and Australia's Foreign Investment Review Board, the responsible entity added.
Australian Unity Investment's independent board committee appointed the Australian branch of UBS AG to be its financial adviser and Ashurst as its legal adviser in relation to the proposal.
