Blackstone Group LP could potentially cancel its takeover bid for Investa Office Fund and is demanding a break fee if Investa Office's board postpones a shareholder vote on the merger to consider Oxford Properties Group's rival bid, The Australian Financial Review reported.
Investa Office received affirmation from the New South Wales Supreme Court in Australia that adjourning a meeting to consider Blackstone's A$5.3485-per-unit takeover offer is justified. The company decided to push ahead with the Sept. 6 meeting but noted that it will be adjourned shortly after it starts.
Blackstone's Australian property head, Chris Tynan, pointed out in a letter to Investa Office Chairman Richard Longes that the Oxford Properties bid is heavily conditional, and that the Canadian suitor has never completed a real estate acquisition in Australia to date, "let alone a deal of this nature," according to the report.
The letter also noted that the new proposal has not received approval from the investment committee of OMERS and that its financing has also not been confirmed so far. Oxford Properties is the real estate arm of Canadian pension fund OMERS.
Blackstone has the right to match any better offer in its agreement with Investa Office, the Sept. 5 report added.