Investa Office Fund's responsible entity signed a scheme implementation agreement with Oxford Properties Group after Blackstone Group LP advised that it will no longer provide a matching or superior proposal to the Canadian suitor's A$3.35 billion bid for the listed Australian fund.
Investa Listed Funds Management Ltd.'s board, which previously backed the private equity giant's A$3.3 billion bid, is now unanimously recommending the offer of the real estate arm of the Ontario Municipal Employees Retirement System in the absence of a superior proposal.
The A$5.60-per-unit, all cash takeover offer represents a 23.1% premium to the target's A$4.55-per-unit ex-distribution price as of May 25. It also reflects a 28.7% premium to the A$4.35-per-unit three-month volume-weighted average price of Investa Office up to May 25.
KPMG Corporate Finance was appointed as the independent expert for Oxford's offer, which is still subject to, among other things, the approval of at least 75% of Investa Office's unit holders and of the Australian Foreign Investment Review Board.
According to a news release, Investa Office unit holders will convene a meeting in early December to consider Oxford's proposal.
Meanwhile, Blackstone will receive a break fee of about A$32 million in light of the developments. The break fee was previously agreed to upon the signing of the terminated deal for the private equity giant's A$5.52-per-unit takeover offer for the Australian real estate investment trust.