Investa Office Fund, or IOF, is suspending its program to buy back up to 5% of its securities on the market, in light of Investa Property Group increasing its stake in the company to 19.95%.
The trust noted that proceeding with the buyback program could result to Investa's shareholding in the company to go over 20%, surpassing the takeover threshold. Because the stake change would have been caused by IOF's buyback program, Investa is exempted from launching a takeover offer.
However, IOF's responsible entity will be required to obtain waivers under certain of IOF's financing agreements, an endeavor that Investa Listed Funds Management Ltd. expects to achieve without any difficulty, according to a release.
Prior to its recent A$276 million deal for Cromwell Property Group's entire 9.89% shareholding in IOF, Investa in September purchased 60 million IOF units for A$265 million.