Funds managed or advised by Blackstone Group LP's Blackstone Singapore Pte. Ltd. have made an offer to buy Investa Office Fund through a A$5.25 per-unit trust scheme.
Based on Investa Office's 598,419,000 shares outstanding as of Dec. 31, 2017, the cash offer translates to A$3.14 billion.
Investa Office said that after taking into account the expected second-half 2018 distribution, which will be paid in August, the offer price is reduced to about A$5.15 per unit. The distribution-adjusted proposal represents a 13.2% premium to the externally managed Australian office real estate investment trust's ex-distribution closing price of A$4.55 and a 16.0% premium to the target's A$4.44 one-month volume weighted average price per unit as of May 25.
The terms and steps to finalize the unsolicited, indicative and nonbinding proposal are being ironed out under a process deed signed by Investa Office's responsible entity, Investa Listed Funds Management Ltd., and Blackstone affiliate Quartz Holding (NQ) Pte. Ltd.
Investa Listed Funds, which intends to recommend the offer to Investa Office unit holders, said the offer represents a 4% premium to Blackstone's first confidential proposal made April 5. Blackstone has been and is continuing conducting due diligence on Investa Office. Investa Listed Funds agreed to a no-shop provision under the process deed.
Blackstone's proposal is subject to certain conditions, including the signing of a scheme implementation agreement and approval from Investa Office unit holders.
Investa Listed Funds engaged J.P. Morgan Australia Ltd. as financial adviser and Allens as legal adviser in relation to the proposal.
