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Blackstone adjusts terms to facilitate A$3.3B Investa Office Fund takeover


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Blackstone adjusts terms to facilitate A$3.3B Investa Office Fund takeover

Blackstone Group LP and Investa Office Fund's responsible entity, Investa Listed Funds Management Ltd., entered into new agreements to satisfy the conditions for the private equity giant's commitment to further increase its takeover offer for the listed Australian fund to A$5.52 per unit.

Under the latest deal, unit holders of the target will receive the enlarged cash offer if the scheme is approved Sept. 17, three days later than Blackstone's initially proposed on or before Sept. 14 deadline for a meeting of unit holders. The proposed A$33 million break fee, which is about 1% of the aggregate A$3.3 billion increased bid, was also agreed to be payable to Blackstone under the new timeline.

In addition, if the scheme is approved after Sept. 17, the consideration payable will remain at A$5.3485 per unit, unless Blackstone waived the requirement beforehand. If the takeover is not approved after the said date, the break fee will be equal to 1% of the initial offer or about A$32 million.

The parties also agreed that Blackstone will no longer be subject to its standstill obligations to pursue its takeover bid alone if the scheme is terminated.

Investa Listed will seek judicial advice Sept. 10 to confirm if it would be justified to commence a meeting of unit holders Sept. 17 to vote on Blackstone's higher bid.

The responsible entity also maintained that it continues to unanimously recommend Blackstone's offer in the absence of a superior proposal.

Meanwhile, Oxford Properties Group President Michael Turner, Executive Vice President Robert Aziz and Europe/Asia Pacific head Paul Brundage are expected to arrive in Sydney to meet local real estate heavyweights such as Investa Property Group and other unnamed bankers and potential financiers for its A$5.50-per-unit rival offer for Investa Office, The Australian Financial Review's Street Talk reported Sept. 10.